Economists Warn Tariffs Could Trigger Inflation Spike

Economists and commentators are warning that tariffs, particularly those implemented by the Trump administration, are contributing to rising inflation and may soon drive consumer prices higher. While some argue that tariffs are necessary to balance international trade, especially with China, others caution that these measures ultimately harm consumers and the broader economy by raising import costs. Former Vice President Mike Pence and financial author Robert Kiyosaki both highlight the inflationary risks of tariffs, with Kiyosaki further noting that tariffs alone cannot protect American jobs, especially amid the growing threat of automation and artificial intelligence. However, some analysts suggest that the inflationary impact of tariffs may be overstated due to weakened consumer confidence and a slowdown in both durable goods and service consumption, indicating that demand-side constraints could temper price increases. Despite this, many forecasters expect higher tariffs will eventually filter through to consumer prices, making inflation a persistent concern.