As tariffs increase prices, are consumers noticing?
Last year, the Trump administration imposed new tariffs on roughly $280 billion worth of U.S. imports — everything from solar panels and washing machines, steel and aluminum, and about half of what we import from China. In response, Ford, Coca-Cola, Walmart and other large companies have warned about the impact of tariffs on their bottom lines. But what effect are these tariffs having on U.S. consumers and households? The consumer price index, which tracks price changes across a wide selection of goods and services, is 0.3 percent higher now than it would have been without the tariffs, according to recently released analysis from the Federal Reserve Bank of New York. Researchers at Princeton University and the London School of Economics estimate the tariffs are costing the average U.S. household an additional $112 per year.
Click the audio player above to hear the full story.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
