Hey everyone! 📈 Let us break down why tariffs are making life a bit pricier in the US economy and how it could hit your wallet.
Michael Strain, director of economic policy studies at the American Enterprise Institute, warns that core inflation – that is, inflation excluding food and energy – has been above the Fed’s 2% target and is getting worse thanks to tariffs. Simply put, tariffs are extra taxes on goods imported from abroad, and those costs often land on consumers like us.
Here is what you should know:
- Steep price hikes: Electronics (think phone accessories), home appliances, and fashion items from overseas have seen the biggest jumps.
- Delayed impact: Strain says we have not even felt the full force yet. More price increases could roll out in the coming months.
- Everyday pinch: From chai lattes and pizza nights to your next online shopping haul, import taxes can trickle down to daily expenses.
What can you do? Track your spending, compare prices between local and global brands, and explore secondhand markets or local alternatives. Staying informed is key when prices are on the rise 💪💡.
Reference(s):
Tariffs fueling accelerating inflation in U.S. economy, economist says
cgtn.com
