Boston Globe February, 2025
Early in his 2024 presidential campaign, Donald Trump recognized that increased prices at the supermarket and gas station threatened voter support for a second Joe Biden term. Trump proclaimed that if elected, he would bring down prices for the American consumer. Of course, once elected, he reneged on this pledge and a good number of others. The fact is, given his announced policy agenda, President Trump may yet be responsible for letting loose an inflation bomb. Here are two reasons why.
First, Trump has signed executive orders to impose broad tariffs on imports from Canada, Mexico, and China, the biggest trading partners of the United States. These tariffs include a 25 percent duty on all products imported from Canada and Mexico, with the exception of Canadian energy resources, which will have a lower 10 percent tariff. Chinese imports will face a 10 percent additional tariff. (On Monday, Trump said he will delay the tariffs on Mexico and Canada for a month after reaching border-security agreements with both countries.) Trump has also threatened to impose new tariffs on aluminum, steel, copper, computer chips, and pharmaceuticals from a range of countries.
