Tariffs Reduce Inflation?

… at the expense of the economy. Even if true, not what anyone wants.

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“Not what anyone wants”?

Who doesn’t?

Notice what’s happening in China? Tariffs are having a major impact

What is happening in China?

I posted on the Disturbance in the Force thread

Economy was to hot leading to inflation. Sounds like tarrifs slowed down demand a bit

Per article , key line to me…

researchers Régis Barnichon and Aayush Singh said higher tariffs lead to reduced economic activity, higher unemployment and lower inflation in the short term.

Lower GDP, Higher unemployment AND lower inflation in the SHORT term.

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Then should I be mad that tariffs are being rolled back on food products?

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Sorry, I assumed no one wanted to hurt the economy.

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2.8% growth (2024 gdp growth) is too hot? I guess you want interest rates to stay high too?

Inflation was falling last year and continued until 3Q25 actually. The bump up wasn’t much so we will see if it’s a stall or a reversal.

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We randomly decided to check egg prices.

10 years ago egg prices. The year 2015.

Today they are lower than 10 years ago. Eggs have experienced Deflation over past 10 years.

Did not expect that. Will check several more items.

Just checked Gasoline.

In 2015 it was $2.43 per gallon.

Just bought some for $2.47. Virtually no change in 10 years.

Can you provide a source

AI Overview

+3
Price of Eggs Over Time | MoneyLion
Ten years ago (around 2015), the average price for a dozen eggs was significantly lower than in recent years, with some sources citing prices around $1.91 per dozen and others noting prices that plunged to historic lows by mid-2017 due to a glut of eggs on the market following an avian flu outbreak in 2015. For comparison, prices were higher in 2010 (~$1.66/dozen) than they were in 2015, but prices were still much lower than they are today.

Tariffs make things more expensive causing inflation. Tariffs can be good but need to be targeted and not all at once. The economy before Covid was great and they did a few tariffs and it was ok. Right now the stock market is up but the economy isn’t better but slightly worse bc hiring is down.

Tariffs take yrs to work where we ramp up domestic production but employers need to be certain longterm. The next president can simply undue them so it’s chaos now.

My take

Apparently not based on the article

Thanks “Fed researchers”
We lowered inflation by making the economy worse. Sounds like a great plan

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Year Average Egg Prices by Year* Average Annual CPI for Egg** Egg Prices Adjusted for Inflation in 2022 Dollars
1980 $0.84 88.6 $2.78
1981 $0.90 95.9 $2.76
1982 $0.87 93.3 $2.74
1983 $0.89 97.7 $2.68
1984 $1.00 109.1 $2.69
1985 $0.80 91.000 $2.58
1986 $0.87 97.200 $2.63
1987 $0.78 91.500 $2.50
1988 $0.79 93.600 $2.48
1989 $1.00 118.500 $2.48
1990 $1.01 124.100 $2.39
1991 $0.99 121.200 $2.40
1992 $0.86 108.300 $2.33
1993 $0.91 117.100 $2.28
1994 $0.86 114.300 $2.21
1995 $0.92 120.500 $2.24
1996 $1.11 142.100 $2.29
1997 $1.06 140.000 $2.22
1998 $1.04 135.400 $2.26
1999 $0.96 128.100 $2.20
2000 $0.91 131.900 $2.03
2001 $0.93 136.400 $2.00
2002 $1.03 138.200 $2.19
2003 $1.24 157.300 $2.32
2004 $1.34 167.000 $2.36
2005 $1.22 144.100 $2.49
2006 $1.31 151.200 $2.54
2007 $1.68 195.291 $2.53
2008 $1.99 222.708 $2.62
2009 $1.66 190.024 $2.57
2010 $1.66 192.833 $2.53
2011 $1.77 210.492 $2.47
2012 $1.84 217.141 $2.49
2013 $1.91 224.219 $2.50
2014 $2.02 242.990 $2.44
2015 $2.47 286.232 $2.53
2016 $1.68 225.979 $2.18
2017 $1.47 204.454 $2.11
2018 $1.74 226.595 $2.26
2019 $1.40 203.867 $2.02
2020 $1.51 212.542 $2.09
2021 $1.67 222.074 $2.21
2022 $2.86 293.676 $2.86

Eggs are a commodity and prices reflect, more than many other products, market supply vs demand. Bird flu caused large shortages. Prices, naturally, spiked. Over time, suppliers have brought back their flocks and supply is once again up, lead to (sarcastic shock face) lower prices.

**ump and his supporters before the election: Adding tariffs will lead to lower prices.
**ump and his supporters now: Getting rid of tariffs will lead to lower prices.

Stop gaslighting this board.

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No, what I posted was tariff does not lead to inflation