The possibility of stiff tariffs on China, Canada and Mexico could lead to higher prices on goods and services.
CHARLOTTE, N.C. — As the inauguration of President-elect Donald Trump gets closer, there is interest into how his campaign promises could impact the economy.
The possibility of stiff tariffs on China, Canada and Mexico could lead to higher prices on goods and services.
Economist told CNBC those tariffs combined with the promise to kick out millions of undocumented immigrants could have a domino effect on the economy and lead to lower employment rates. According to experts, universal tariffs would raise costs by $3,000 in 2025 for the average U.S. household, according to the Tax Policy Center.
Economists at George Mason University said the tariffs would quickly raise inflation, because businesses would struggle to keep up with demand and pass those higher prices to consumers to pay for the tax.
That may already be happening, as inflation rose over to 2.5% in November.
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