This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at tariffs and inflation. Mike, the trade war with China seems to be escalating. Over the remaining months in the year, the US is scheduled to increase tariffs on many Chinese products here sold here. China has said they will do likewise. Will we begin to see the impact of the tariffs on price inflation?
- Many of the Chinese products are bought directly by consumers, so the worry is we will see higher consumer prices and inflation
- Electronics, clothing, shoes, toys imported from China will be impacted
- Have already seen prices of electronics prices rise at faster rates in recent months – close to 3% on an annual basis
- Still, although prices will rise faster, rise should be minor
- Maybe a 0.1 to 0.2% point rise in inflation rate
- Meaning 2.2% rather than 2%
- Also, once tariffs are fully implemented, inflation rate should return to where it was
- I’m MW
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.