Why Does the Impact of the Tariffs on US Inflation Still Seem Contained?
The Weekly Globe: in this article, we analyze why the increase in tariffs has not yet triggered the projected inflationary shock and how the current hike differs from that of Trump's first term
By Victor Camacho
This year has been primarily marked by the escalation of trade tariffs imposed by the United States. The tariff on US imports was close to 30%, but fell to around 18% after negotiations. However, the impact on US inflation has been smaller than initially expected. In this article, we will analyze the reasons why the increase in tariffs to levels unseen since the 1930s still has not provoked the inflationary shock expected. We will also explain how the current tariff hike differs from the one in President Donald Trump's first term.
Read also
Check out more articles from The Weekly Globe
How do Emerging Market Bonds behave when the Fed cut rates?
The Weekly Globe: in this article, we analyze interest rate cycles over the past 24 y [...]
Beyond Direct Lending: Special Situations and Opportunistic Private Credit
The Weekly Globe: in this article, we explain what special situations and opportunist [...]
Why Should I Increase My Allocation to Fixed-Rate Assets?
The Weekly Globe: in this article, we explain why we believe there is a favorable asy [...]