things may get pricey
Get Ready For Inflation And Interest Rates To Rise Again
Companies are already preparing to raise prices to account for Trump's proposed tariffs on imports. Inflation could signal more interest rate hikes.
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The Lede
One of the first policies expected from President-elect Donald Trump after he's sworn into office is higher taxes on imported goods. Many economists say these tariffs, as well as some of his other proposals, could kick-start another bout of inflation and interest-rate hikes.
Key Details
- One of Trump's cornerstone proposals was a 60% tariff on goods imported from China and a 10% to 20% tariff on imports from other countries.
- The US Census Bureau reported that broad tariffs would likely affect the prices of autos, food and beverages, furniture, and household appliances.
- But there's a catch. The tariffs Trump enacted in his first term did not result in a significant inflation increase. The difference this time around is how much deeper and more wide-reaching Trump's tariff proposals are.
