Tariffs Dooms America to High Inflation

[Terrel L. Shields]

Not. Inflation up last month? 0.1%

https://www.cnbc.com/2025/06/11/cpi-inflation-may-2025.html

Excluding food and energy, core CPI came in respectively at 0.1% and 2.8%, compared with forecasts for 0.3% and 2.9%.​

 

[ucbruin]

Hasn't West said this is this a Biden Budget....

 

[jturner01]

Tariffs are a tax, but a one time tax. Inflation is and always will be an increase in the money supply. That is increasing and this pause in CPI prints will begin to increase again especially now that we have the NGO's spending again.

 

[George Hatch]

I expect significant retail inflation by the end of the year. But I also expect a disparate impact on our trading partners, sufficient to bring some of them to the table to negotiate more favorable-to-them terms. I would not want to be a mfg making knockoffs of Crocs or Nikes in China right now.

Investment capital is not patriotic. Capital seeks ROI. So by the time a couple of the smaller competitors come to terms the larger competitors will be compelled to either match those terms or cede those markets.

"If you won't do it at $225 then we'll just go find someone else who will" ​

​

Relocating some of this commerce to Mexico could result in a significant win-win for both sides of the transaction. And really, our economic interests are far more closely aligned to Mexico's interests than to the interests of the asian nations.

 

[J Grant]

The effect of tariffs are not yet known, since most merch sold was ordered prior to the tariffs and they have not been enacted yet in many cases. Most predict higher prices due to them - whether one classifies that under inflation or not -

 

[Charles West]

Tariffs are not inflationary; in fact, they tend to reduce prices due to the principle of substitution. Econ 101.

 

[jturner01]

George, I expect inflation, but I also anticipate significant market disruptions. They are planning a coupe and that will get very ugly. You can hear it in the speeches from many on the democrat persuasion. The amazing thing is, they do not seem to realize that the bond market and the rest of the world are telling us that the credit lines have been cut. We are basically being forced to monetize our own debt, just like a banana republic.

 

[jturner01]

Tariffs are not inflationary; in fact, they tend to reduce prices due to the principle of substitution. Econ 101.

Thank you. If you have to pay more for a product, you will now either have to not pay more for something else or not buy that item. This will tend to be deflationary.

 

[George Hatch]

IMO a reset was ultimately inevitable. We couldn't continue to do what we've been doing in perpetuity.

When it comes to various forms of fighting, one of the conventional wisdoms is "be first".

 

[J Grant]

Thank you. If you have to pay more for a product, you will now either have to not pay more for something else or not buy that item. This will tend to be deflationary.

When people buy less due to higher prices, it slows the economy.