What Trump's new tariff proposal could mean for inflation
The President-elect says he’ll implement new tariffs on China, Canada and Mexico when he gets back in office.
Transcript:
Comway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re observing on TheStreet nowadays.
Center of attention is on the retail sector this Tuesday. Consumer self belief rose for the second straight month, based on the Conference Board, with consumers upbeat about job prospects. Some retailers, on the choice hand, aren’t seeing that show up of their business. Best Buy posted quarterly results that missed analysts forecasts.
Related: Walmart issues warning as Trump preps massive tariff hikes
Retail is in the spotlight for every other reason to boot: tariffs. President-elect Donald Trump is rolling out the beginnings of his tariff plan. On a post on Truth Social he writes “As one of my many first Executive Orders, I may sign all necessary documents to charge Mexico and Canada a 35% Tariff on ALL products coming in the US.” The U.S. is a significant destination for its two biggest trading partners. Eighty three % of all Mexican exports and seventy five % of all Canadian exports are headed here.
Trump also took aim at China, threatening an additional 10 % tariff tacked on to existing tariffs. Just how high these tariffs will go is unclear. Trump has already vowed to strip China’s status as a most-favored-nation trading partner and impose tariffs of greater than 60 %.
Which is necessary to notice that the tariff threat isn’t in point of fact tied to bringing jobs back to The the U.S.. In his social media post, Trump said the tariffs are in retaliation for Mexico now no longer stemming the go with the flow of migrants and China now no longer stopping the go with the flow of illicit drugs like Fentanyl.
Many economists fret Trump’s tariff plans will spark a tit-for-tat trade war and stoke more inflation at a time when American citizens are already battling higher living costs.
That’ll do it to your Everyday Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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