While economists say that tariffs result in higher prices, both Biden and Trump insist that consumers will be unscathed. Consumer prices were rising at an annual 2.9 percent rate in July 2018 when the first China tariffs took effect. That allowed some U.S. buyers to switch from tariffed Chinese products to less expensive alternatives. “I don't believe it'll be inflation,” Trump said, adding that his tariffs are intended to convince foreign companies to build new factories in the United States. But the renewed China trade war that Trump promises is unlikely to be as painless for consumers as the 2018-2019 campaign, economists said.

Source: Washington Post June 03, 2024 18:49 UTC