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While high in historical perspective, the tariffs are not effectively as high as the headlines make them sound, and there is a lot more to the economy than fore

While high in historical perspective, the tariffs are not effectively as high as the headlines make them sound, and there is a lot more to the economy than foreign trade. Agree. the service sector is a huge part of the economy. Imported durable goods, which are most affected by the tariffs, are only a small part of US consumer spending.

zahlman 1y ago
Notably, per TFA: > Services inflation provided much of the push higher, rising 1.1% in July for the largest gain also since March 2022. Trade services margins climbed 2%, coming amid ongoing developments in President Donald Trump's tariff implementations. Figuring out and applying the rules seems to be having more of an effect than the rules themselves. Which is a good reason not to expect a 0.9% monthly shock to translate into an 11.4% annualized inflation (even setting aside that core CPI is a much different measure from base PPI): they won't have to keep figuring out the rules.