Understanding how Trump’s tariffs will impact consumer prices — its less than you think

Economists tend to agree that placing tariffs on imported goods will have a negative impact on the economy. For example, Chipotle restaurants predict a .05 cent increase in the cost of their burritos. Would you even notice?

Prices of finished goods will rise and there may be reduced quantities available to consumers. Without tariffs, each country would produce the goods that they can produce most efficiently and then trade for other goods.

With permanent tariffs that changes.

Producing most efficiently means producing at a cost lower than another country. If the trade is truly free (and fair) both the producing country and the receiving country benefit from free trade. When the trade is not fair, one country has an advantage while the other loses.

This is what President Trump is trying to fix.

After Trump was sworn into office, he looked at every trade agreement the US had with our trading partners. For whatever reason, every agreement was slanted in favor of our trading partner. And to the detriment of the US.

For instance, we charge China and the European Union a 2 ½% tariff on cars made there and sold in the US. For a car made in the US and sold in Europe, a 10%…