1A What Donald Trump's Tariffs Mean For American Wallets And Beyond
Dec 4, 2024
Enda Curran, a Bloomberg News reporter specializing in global economy, and Ernie Tedeschi, Director of Economics at Yale Budget Lab, delve into the implications of Trump's proposed tariffs. They discuss how these tariffs could raise prices on everyday goods, particularly groceries, and spark inflation worries. The conversation highlights the potential effects on American manufacturing, the delicate U.S.-Canada trade relationship, and the complexities of international economic dynamics. Listeners gain insights into consumer behavior changes amid tariff uncertainties.
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Who Pays Tariffs?
- Tariffs are taxes on imported goods, and economic evidence shows American businesses bear the burden.
- These businesses often pass the cost onto consumers as higher prices.
Washing Machine Tariff Example
- In 2018, President Trump increased tariffs on Chinese washing machines, causing import prices to rise.
- Even American-made washing machine prices increased due to reduced competition.
US-Mexico Trade and Tariff Implications
- Trump's proposed tariffs on Mexico could increase prices on produce, electronics, and cars for American consumers.
- Mexico is the top U.S. export destination, making retaliatory tariffs impactful.