Tariffs and Inflation Commentary

February 14, 2025

Introduction

Theresa's latest research commentary explores the delayed effects of tariffs on inflation and how these factors have impacted the global economy. Tariffs, a key instrument of trade policy, have been at the center of international trade disputes in recent years. The imposition of tariffs has led to a surge in prices, primarily due to supply chain disruptions and increased production costs. In this commentary, we delve into the intricacies of tariffs and their impact on inflation, providing valuable insights for policymakers, investors, and businesses.

Key Points

• The imposition of tariffs has led to a significant increase in production costs, primarily due to supply chain disruptions and higher raw material prices.
• The delayed effects of tariffs have resulted in a surge in prices, particularly in industries that rely heavily on imported goods, such as manufacturing and construction.
• The impact of tariffs on inflation has been exacerbated by other factors, including the COVID-19 pandemic and global economic uncertainty.
• The research highlights the need for policymakers to carefully consider the potential