Goldman Sachs economist David Mericle defended the firm’s forecast that tariffs will negatively impact consumers despite criticism from President Trump. Mericle asserted Goldman’s research, authored by economist Elsie Peng, indicates consumers will bear approximately two-thirds of the costs. This would push the personal consumption expenditures price index to 3.2% by year-end. The economist believes this effect is a one-time occurrence unlikely to significantly influence the Federal Reserve’s policy decisions, as the labor market remains a primary concern.
Read More
In response to President Trump’s 20 percent tariff on EU goods, German engine manufacturer Deutz announced it will fully pass on increased costs to American customers. This price increase is a direct result of the tariffs and affects Deutz’s construction and agricultural vehicle engines. The company’s CEO stated that competitors are similarly affected, making price hikes unavoidable. This action underscores economists’ warnings that tariffs inflate prices for American consumers, potentially triggering economic downturn. Deutz, however, expressed hope for continued fair trade relations with the U.S.
Read More
I can’t wrap my head around how anyone could see tariffs as anything but a tax on American consumers. It’s common sense. When prices go up due to tariffs, it’s the American people who end up paying the difference. Companies like Walmart or Publix will simply raise their prices to maintain their profit margins, and who has to foot the bill? The middle and lower class citizens who are already struggling to make ends meet.
The fact that Trump and Vance are pushing this narrative that tariffs are somehow good for the economy is laughable. It’s not a legitimate policy idea up for debate among economists.… Continue reading
John Q. Hosedrinker