Tariffs Still Aren’t Raising Consumer Prices
Tariffs are taxes on consumers” is a popular mantra among critics of the Trump administration’s trade policies.
But it is hard to support based on price data released in the months since the Trump administration began imposing tariffs on imported steel, aluminum, and nearly half of goods imported from China.
In the October through December period alone, the U.S. Treasury collected $8 billion in tariffs, 83 percent more than it did a year earlier. But consumer prices have barely budged. The Department of Labor’s consumer price index was just 1.9 percent higher in December than it was a year ago and on a month-t0-month basis, prices actually fell