Tariffs on imports trigger trade war | Here's how it'll impact US consumers


Tariffs on imports trigger trade war | Here's how it'll impact US consumers

According to the Federal Reserve of Atlanta, the price increase will depend on how much companies pass onto consumers.

"An additional 10 percent tariff on Chinese imports, 25 percent tariffs on Canadian and Mexican imports, and 10 percent tariffs on other countries could raise consumer prices on everyday retail purchases such as food and beverage items and general merchandise, covering about a quarter of the total consumption basket, by 0.81 percent to 1.63 percent, assuming half to full pass-through," a study from the Atlanta Fed said. "The aggregate effect on the overall Consumer Price Index (CPI) further hinges on the price sensitivity of the remainder of the consumption basket."

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