Now, the prices of foreign goods aren’t really adding to inflation. But if President-elect Trump goes ahead with the strongest U.S. tariffs in decades, prices could rise even more next year.
The government said Friday that the import price index only went up by 0.1% in November.
For the year ending in November, the cost of imports went up 1.3%. If fuel imports are taken out, import inflation rose a bit faster, but it was still only 2.3%.
We will keep a close eye on these prices in 2025 because the Trump White House has promised taxes.
The cost of imported items like appliances went up because of tariffs in 2018 during Trump’s first term, but not enough to make a big difference in U.S. inflation.
Based on the consumer price index, inflation rose from 2.1% in 2017 to 2.4% in 2018.
After that, the rate of inflation went back down to 1.8% in 2019, in part because Trump lifted some restrictions.
Still, it was clear that tariffs had an effect on some customers.
For example, the price of home equipment went down from 2013 to 2017. Prices of appliances went through the roof after the taxes were put in place.
A consumer price index report says that the prices of goods went up 11% from February 2018 to February 2019.
Economists say that if Trump goes as far as he has suggested, the tariffs could have a bigger effect on U.S. prices because they are much bigger now.
Others think that Trump will find a way to make deals that reduce the impact of the tariffs.
In fact, taxes aren’t even the first problem. In October, a short strike at major West Coast ports was put off so that there could be more talks. The short-term peace ends on January 15.
If there isn’t a deal, the price of goods could go up if there are shortages after a long strike.
The main point of disagreement is that the port officials want to use more automation. The union doesn’t want more technology because they think it will mean fewer jobs in the port in the long run.
Being aware of the chance of another strike right before he takes office, Trump tweeted on Friday that port officials should give in to the union’s demands and avoid major automation.
Trump wrote that the port should spend more money on “the great men and women on our docks” instead of “expensive machinery that will always need to be replaced.”
