Ana Swanson

I think economists also think that those things happen, but they see a lot of other side effects happening from tariffs too, that in a lot of cases can offset those positive impacts from tariffs. So you did have today economists just racing to downgrade their forecasts for the US economy, lifting their expectations for inflation, saying that unemployment would rise as a result of this.

I think economists also think that those things happen, but they see a lot of other side effects happening from tariffs too, that in a lot of cases can offset those positive impacts from tariffs. So you did have today economists just racing to downgrade their forecasts for the US economy, lifting their expectations for inflation, saying that unemployment would rise as a result of this.

S&P Global saying that manufacturers were going to have to pay more for their inputs. So inflationary pressure would build as a result. So economists just see a lot of price increases from this. And then from that flows a slower economic growth, potential unemployment. So it's a very different picture of how tariffs impact the economy.

S&P Global saying that manufacturers were going to have to pay more for their inputs. So inflationary pressure would build as a result. So economists just see a lot of price increases from this. And then from that flows a slower economic growth, potential unemployment. So it's a very different picture of how tariffs impact the economy.

So the president likes to say that foreign countries, foreign companies will pay the tariffs. But a lot of times it's the company that is bringing the product into the United States that pays. And then a lot of times they will pass that cost on to the consumer. So we can think about an example. Let's say, Walmart is bringing a toaster in from China.

So the president likes to say that foreign countries, foreign companies will pay the tariffs. But a lot of times it's the company that is bringing the product into the United States that pays. And then a lot of times they will pass that cost on to the consumer. So we can think about an example. Let's say, Walmart is bringing a toaster in from China.

When Walmart brings that toaster in, they're now going to have to pay 34% of its price in the form of an additional fee to the US government. So does Walmart ask the toaster maker in China to eat that cost and accept less money for the toaster? Or does Walmart reduce its own profits? Or do they just jack up the price of the toaster and have the U.S., consumer pay more for it.

When Walmart brings that toaster in, they're now going to have to pay 34% of its price in the form of an additional fee to the US government. So does Walmart ask the toaster maker in China to eat that cost and accept less money for the toaster? Or does Walmart reduce its own profits? Or do they just jack up the price of the toaster and have the U.S., consumer pay more for it.

A lot of times it is the American consumer because companies tend to pass on the cost of those tariffs so that they can preserve their own profit margins and they don't have to see their own profits decline.

A lot of times it is the American consumer because companies tend to pass on the cost of those tariffs so that they can preserve their own profit margins and they don't have to see their own profits decline.

Yeah, I think it's definitely historic. It brings tariffs to rates that we haven't seen in nearly a century. And it changes the structure of U.S. trade and, to a certain extent, the U.S. economy. And it's going to be a big shock because the United States does rely on imports. Consumers rely on imports. Manufacturers rely on imports.

Yeah, I think it's definitely historic. It brings tariffs to rates that we haven't seen in nearly a century. And it changes the structure of U.S. trade and, to a certain extent, the U.S. economy. And it's going to be a big shock because the United States does rely on imports. Consumers rely on imports. Manufacturers rely on imports.

The president and his supporters argue that we might go through kind of a transition period, but in the long run, it's going to be worth it because we'll have more manufacturing in the United States and we'll restore that manufacturing.

The president and his supporters argue that we might go through kind of a transition period, but in the long run, it's going to be worth it because we'll have more manufacturing in the United States and we'll restore that manufacturing.

Yeah, I definitely think that is the case. So, you know, it really seems like this is the first day of, in trade, this new world order that President Trump has been promising. And he's really throwing out the old system that the United States worked out with other countries after World War II. He seems unafraid to demolish that system because he says it's been unfair to the United States.

Yeah, I definitely think that is the case. So, you know, it really seems like this is the first day of, in trade, this new world order that President Trump has been promising. And he's really throwing out the old system that the United States worked out with other countries after World War II. He seems unafraid to demolish that system because he says it's been unfair to the United States.

It hasn't worked for our country. What's the harm in blowing that up, essentially? So he has scrapped that old system that was built more on negotiation and cooperation with other countries. He's replacing it with basically a system of his own devising in terms of the tariffs that we're charging on other countries. And this is really a vision of America first.

It hasn't worked for our country. What's the harm in blowing that up, essentially? So he has scrapped that old system that was built more on negotiation and cooperation with other countries. He's replacing it with basically a system of his own devising in terms of the tariffs that we're charging on other countries. And this is really a vision of America first.

We put up trade barriers, you know, maybe that will hurt our trading partners. But the United States has the biggest, most valuable market. The United States will be, you know, maybe hurt, but will be less hurt than other countries. And we will end up being on top.

We put up trade barriers, you know, maybe that will hurt our trading partners. But the United States has the biggest, most valuable market. The United States will be, you know, maybe hurt, but will be less hurt than other countries. And we will end up being on top.