Prices are affected by many factors. Supply, demand, competition and marketers who raise prices on domestic goods to match higher prices on foreign-made goods that are increased by tariffs.
The question is how high the price increases will be. Nobody thinks that tariffs will result in lower prices.
Tariffs are inherently inflationary since much if not all of the additional costs are passed on to consumers.
Wendy
IIRC, Leap does (part of deflation).
DB2
Seems the tariffs on our allies and trading partners will go into effect, as scheduled, tonight.
There is âno room left for Canada or for Mexico,â Trump reiterated Monday afternoon at the White House, saying he wouldnât pare back his tariffs levels on those two countries.
"The economy appears to be gagging on the uncertainty created by the haphazard economic policymaking happening in DC," Moodyâs Analytics chief economist Mark Zandi said in a recent post. He listed a range of factors, including âtariff wars, DOGE cuts to jobs and government programs and agencies, and deportations [that] are sowing confusion, which puts a pall on investment, hiring and spending.â
Steve
I am thinking the Tariffs against Canada and Mexico is a sick joke and will not be implemented. After seeing the treasury secretary this weekend I think Trump wonât do it. We will see tomorrow if I am right.
Gasoline has fallen a bit
Kirkland Italian imported sparkling water down 20 cents per case
Andy yea of little faith
Sorry man, youâre trying to apply logic and reason. Thatâs a non-starter.
Tariffs will go into effect. However, when the economy quickly takes a swan dive into the shallow end of the pool, he will fairly quickly undo themâbut not all at once. Which ones get a quick reprieve? No idea because it is all based on IMAGE, not facts. That is a point little understood. If it LOOKS GOOD/SOUNDS GOODâit gets done. It may be the worst possible decision, but it will LOOK GOODâand that is all he cares. His supporters are, of course, totally clueless.
Stay long and stay strongâŚhold until relieved.
The video shows someone you should never ever never ever listen to.
China and Canada announced retaliatory measures on Tuesday after U.S. tariffs took effect overnight, escalating trade tensions and rattling global markets. President Trumpâs new tariffs include a 25% levy on most imports from Canada and Mexico, with an additional 10% tariff on Canadian energy exports. Tariffs on Chinese goods were increased from 10% to 20%. Beijing responded by slapping additional tariffs of 10-15% on a variety of U.S. agricultural imports, including chicken, pork, soy and beef, starting next week, Chinaâs finance ministry announced. Canadian Prime Minister Justin Trudeau, meanwhile, said Ottawa would impose immediate 25% tariffs on more than $20 billion worth of U.S. imports. Tariffs on an additional $86 billion worth of products will take effect in 21 days.
https://www.npr.org/2025/03/03/nx-s1-5316553/trump-tariffs-canada-mexico-china
Problem is that their largest electricity exports are to Wisconsin, Michigan, and New York, all blue states, so Trump wonât care.
Yes, but Wisconsin and Michigan do swing both ways.
Pete
I would not count on that. He wonât care but he will be shown up. There is no other way to reach him. He sees this as a negotiation. He does not notice embarrassing losses.
Meanwhile the independents are split 66 to 34. NPR report. The percentage was explained as 2/3.
@DrBob2 the dates that @Leap1 listed as being deflationary were all years of serious recession â brought about by the tariffs.
Perhaps I should have said, âNobody thinks that tariffs will result in lower prices⌠unless they provoke a recession so severe that deflation will result as it did after the Smoot-Hawley Act in the Great Depression.â In which case, deflation will be the least of the economyâs problems (not to mention investorsâ).
Wendy
I have been saying all along mass layoffs.
Less business.
Less business with the world layoff those who are not working as much or at all.
It is not just that. We are no longer the financial capital. Central Europe is. Frankfurt.
The public will enjoy lower prices. But then wonder if they have a job.
Might as well place this here.
Wonât care initially, but will turn all kinds of colors once the power cuts hit home. Jobs lost, companies closed, and so on. Particularly if some of those jobs are producing needed military goods. He cut his own throat when that happens.
Yes, but (referencing membership of an infamous historic wallet, the Business Roundtable) the corporations located in those Blue states are bright red in their use of âconstitutionally protected free speech moneyâ.
Trump won Wisconsin and Michigan.
I donât remember his other dates, but at least with Smoot-Hawley, the economic contraction came first (1929) then the tariffs (1930).
The 25% increase in electricity tariffs announced today are for Minnesota, New York and Michigan (transmission points near Niagara, Detroit and somewhere in northwestern Minnesota).
DB2
Niagara county voted for Trump. That is also NY-24 - which voted for Tenney (R). It will be interesting to see what she says about it.