Recent data show impacts of tariffs on the US economy

Contrary to Make America Great Again’s Salvationist speech, Donald Trump’s policy to overcharge imports, without any clear technical criteria, is becoming increasingly against their own country, with damage to US companies and population.

A series of data demonstrate the worsening in some economic indicators in the country since the rate of tariffs on various business partners. According to the Institute of International Finance (IF), in a newly widely dismissed note, tariffs are “clearly” increasing inflation, with import prices and producers rising as reserve stocks are over.

The document also points out that manufacturing and private construction are weakening under the weight of fees and more restrictive financial conditions.

In addition, Goldman Sachs estimates reveal that US consumers have absorbed 22% of tariff costs, but this participation could increase, reaching 67% by October.

The country’s consumer price index shows that inflation in the US reached, in June, 0.3%, raising the annual rate to 2.7%, higher since February. According to experts, the index tends to increase, as the effects had not yet been totally felt at that time.

Another fact that indicates the worsening in the local board was the advance of 0.9% in wholesale inflation, the largest in three years. The Producer Price Index (PPI) reached 3.3% compared to last year, another sign of the impacts of tariffs on the US economy. Although they seem small, to a unaccustomed country with inflation, percentages are quite significant.

And while contributing to reducing the country’s total deficit, “the negative effects of higher rates manifest themselves in reducing investments and productivity,” reports Congressional Budget Office (CBO), an independent US Congress body. Also according to the CBO, consumer and capital goods (used by companies in production) will be more expensive, which will reduce purchasing power in the country.

(PL)