Trump’s tariffs will probably increase prices for US consumers, says the president of the Fed

While President Donald Trump threatened Friday new tariffs on Canadian products, the president of the Federal Reserve, Jerome Powell, said the administration tariff plan would probably increase prices for American buyers and retailers.

The scale and duration of the rates are still clear, but a part of import taxes will probably reach consumers, Powell said an economic forum in New York City on Friday.

“We are in a stage where we are still very insecure of what will be tariff, for how long, at what level,” Powell said. “But the probability is that your way will be. It will reach exporters, importers, retailers and, to some extent, consumers.”

The Trump administration slapped 25% of the goods of the goods of Mexico and Canada, as well as 10% of tariffs in China imports. The new round of duties on Chinese products doubled an initial set of rates placed in China last month.

It is widely expected that tariffs of this magnitude increase the prices paid by American buyers, since importers generally transmit a part of the cost of those higher taxes for consumers.

“All forecast some inflation effect of tariffs,” Powell said Friday.

Powell’s comments in the Annual Monetary Policy Forum of the United States marked a notable prediction of the main central banker of the nation accused of maintaining inflation under control.

However, although it recognizes the probability of price increases, Powell said that Fed’s response would depend on what exactly happens.

A potentially temporary increase in prices may not justify the intervention, while a more sustained increase may require action, Powell said, and noted that the strength of the economy provides the Fed time to evaluate the impact.

“In some cases, where we believe it is something unique, the textbook would be to look at it,” Powell said. “If it becomes a series of things and is more than that, [and] If the increases are larger, that would matter. “

Powell spoke hours after Trump in Social truth He threatened to slapped tariffs, sanctions and other measures on Russia in response to the behavior in war with Ukraine.

Tariffs may be necessary “based on the fact that Russia is absolutely hitting Ukraine on the battlefield at this time,” Trump said.

Later, on Friday, Trump told the White House journalists that he can also impose new tariffs on Canada, including a wood rate and a 250% service in dairy products.

Trump indicated that the United States could take reciprocal measures against the rate of approximately 250% of Canada’s dairy as soon as Friday.

“Canada has been cheating for years in wooden rates and dairy products, 250% nobody talks about that rate of 250%, which is taking advantage of our farmers. So that will no longer happen,” Trump said.

Potential movements could expand Trump’s commercial confrontation policy beyond a set of tariffs presented this week.

The tariff policy could cause “some disturbance” for the United States, Trump said in his comments at the White House.

The Trump administration has relieved some of the rates against Canada and Mexico in recent days.

Trump issued a one -month delay for tariffs on goods related to Mexico and Canada’s car. The taller expanded shortly after with an additional pause of one month for goods from Mexico and Canada that complies with the United States-Canadá, or USMCA agreement, a free trade agreement.

In addition to tariffs, Powell mentioned other economic proposals pursued by the Trump administration, including measures that affect fiscal policy and regulation.

“The new administration is in the process of implementing significant changes in policies,” Powell said. “The uncertainty about these changes and their possible effects remain high. We are focused on analyzing the noise signal as the situation evolves. We are not in a hurry.”