What Will Happen to Inflation This Year? It Depends What You Think About Tariffs
Key points
- The consumer emotional survey in Michigan’s state declined in January because the response revealed that Americans’ views on President Donald Trump have obvious gaps.
- Most people believe that Trump’s threat to increase tariffs will damage the US economy and make the inflation rate higher.
- However, some people say that tariffs will reduce prices, and others believe that import tax will not affect.
When Americans wait for President Donalt Trump’s tariff proposal, a new survey shows how consumers do not agree with how they affect the US economy.
Some people see Trump’s proposal Foreign import tax It is also beneficial to the economy, and the price is raised to stagnation. However, according to the close attention of the emotional investigation of consumers in Michigan, more tariffs have led to a significant increase in prices. In January, the index fell for the first time in six months.
Michigan’s survey of Consumer Director Joanne HSU wrote: “The response of the survey clearly states that the recent differences in party factions of economic confidence originated from how consumers think of Trump’s proposal.”
High tariffs proposed by Trump 60 % in China and 25 % of Canada and MexicoBut what is unclear at present The action he actually takesEssence trump card Excluding tariffs In his early execution order, he said he was expected to take action before February 1.
Inflation expects to rise in January, but not everyone
Overall, the survey shows that consumers in January expect the inflation rate will reach 3.3 % in the next year, the highest level since May 2024. Inflation expectations in December, Consumers estimate that prices will rise by 2.8 % next year.
However, 62 % of investigators believe that tariffs may damage the US economy, and the inflation rate will rise to nearly 5 % next year. Many economists have It is also expected to increase the inflation rate If the high customs tax rate is formulated.
This is good for 19 % to think that tariffs are beneficial to the economy. They see that the inflation rate this year is slightly lower than 0 %, which is usually called “Lift“Many economists think Unfavorable to the economyEssence A person of the same amount said that Trump’s tariffs have no effect on the economy, and the expected annual inflation rate is about 3 %.
“These models are consistent with Trump’s outspoken facts for improving tariffs. Consumers seem to have incorporated him into his words and incorporate information into their expectations.”