Robert Romano
Second month in a row, both consumer AND producer Prices have slowed down, according to the data developed by Bureau of Labor Statistics, up to 2.3 percent and 2.4 percent per year, respectively.
This is despite the application of tariffs by President Donald Trump from the beginning of his second term, which began on January 20. MexicoIN Canada AND China February 1. Also, Section 232 Aluminum tariffs adopted on February 11 and Steel tariffs on February 10. Not to mention Global mutual tariffs implemented on April 2 They have been reduced to a total of 10 percent, while commercial negotiations are playing.
At all times, opponents of President Trump’s tariffs were promising that there would be higher prices and greater inflation.
March 2 The leader of the minority of the Senate Chuck Schumer (Dn.y.) boldly predicted“President Trump’s tariffs will raise prices for families by up to USD 1,200 per year.”
March 11 Schumer declared“Inflation increased under Donald Trump, from food to retail to cars.”
February 1, The leader of the home minorities Hakeem Jeffries (Dn.y.) similarly suggested that prices would riseStating: “Tariffs imposed by administration and strongly supported by the Republicans of House will not reduce the high costs of living for everyday Americans. Instead, it will probably do it exactly the opposite and make life more expensive.”
March 3 Dream. Elizabeth Warren (D-Mass.) Also anticipated price increasesSaying: “Donald Trump promised to reduce costs on” day 1 “, but instead of this working family must worry about giant corporations using their random tariff ads as an excuse to raise prices – and the Trump administration does not plan to stop it.”
Remember that all these forecasts were made before the announcement of global mutual tariffs on April 2.
But none of that was right. In April, on the consumer side, food at home fell by 0.1 percent, food from home fell by 0.4 percent, gasoline dropped by 0.1 percent, heating oil dropped by 1.3 percent, clothing fell by 0.2 percent, novel vehicles did not change and used cars and trucks by 0.5 percent.
On the manufacturer’s side, food fell by another 1 percent, the energy dropped by 0.4 percent, a decrease by 1.6 percent, transport and warehouse fell by 0.4 percent, and other services dropped by 0.3 percent.
So it was simply a full mission in terms of expectations and gloomy forecasts made by the president’s opponents. Hey, you win and lose a bit. This is actually good news for the American people, so let’s call it a victory.
Part of the equation may be related to the term Trump’s tariff announcements, which appeared in a quarter, in which economic activity has already slowed down with the gross domestic product of the first quarter (GDP), in which the growth of the corrected inflation was slightly shrunk by 0.3 percent, and when the prices dropped when the demand.
In other words, tariff ads coming when inflation expectations fell, they were not enough to waive these expectations. Now, when mutual tariffs effectively stop for the next few months, while negotiations are ongoing, Democrat forecasts are all the more doubtful.
Another obvious circumstance, in which the Democrats did not foresee during their unfortunate forecasts, was the organization of oil exporting countries (OPEC) significantly increasing the production of oil with the announcement of April 3 For an additional 441,000 barrels a day in June.
What is another way to lower prices, which involves increasing production and consumables.
But to say, all other countries also apply tariffs, but still shorten interest rates at the central bank level, which indicates a rising global consensus regarding lower growth and inflation more generally.
As for this, the enhance in consumer prices is at the lowest level since February 2021, which is very needed by a relief for the American people and there is undoubtedly good news. The more good news is that the tariffs have not yet increased prices that were provided by democratic extermination. And thanks to the constant mutual commercial negotiations, which acquire contracts with Great Britain and China, they can never. Do democrats admit they were wrong?
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Robert Romano is an executive director at the Americans for Limited Government Foundation.
