Kai Rizdahl

Oil was down as well.

We will have the details when we do the numbers.

The big economic question the past nine or so months, basically since the president's tariff palooza back in April, has been, generally speaking, where are the huge price increases that tariffs like that should have generated?

Because while, yes, price levels are up, they're not up like one would expect.

And as a result, consumers haven't pulled back on their spending like one would expect.

Well, a new working paper could explain why.

Gita Gopinath wrote it.

She's a professor of economics at Harvard, once upon a time also the chief economist at the International Monetary Fund.

Dr. Gopinath, it's good to talk to you again.

So let's set the scene here.

Tariffs are the highest they've been in 100 years, give or take.

You in this paper and others have demonstrated that the pass-through to U.S.

prices is nearly 100 percent.

That is, all the prices get passed along, or almost all of them.

And yet we are not paying what we would expect to pay based on the tariff rates that have been announced.

In a nutshell, how come?

There's also a shipping lag here, which I found really interesting, if you could explain that.

And then the third thing you point out in this piece is the USMCA, because so much of what happens in the North American continent economically happens between those three countries, the United States, Mexico, and Canada.

So when or should we ever expect tariffs

to see the rate that we're actually paying match that statutory rate, which just to remind people, the difference is 28%-ish, 27%-ish versus 14%, which we're paying.