Tariffs and Inflation
Tariffs can lead to higher prices, as evidenced by the China tariffs during the Trump administration. While they may cause a one-time increase in the price level, the ongoing impact on inflation is less clear and depends on various factors, including inflation expectations and potential trade wars. The initial effects are often akin to value-added tax increases, with inflation potentially subsiding after a year if no further escalation occurs.In this clip
From this podcast
Odd Lots
Goldman's Hatzius and Kostin on Markets and Macro in 2025
Related Questions
What do you think Trump's tariff policy will affect as discussed in the episode The Tariff Announcement That Shocked Financial Markets and the clip Tariffs and Inflation?
What do you think Trump's tariff policy will affect as discussed in the episode The Tariff Announcement That Shocked Financial Markets and the clip Tariffs and Inflation?
Are tariffs good for the economy as discussed in the episode The Tariff Announcement That Shocked Financial Markets and the clip Tariffs and Inflation?