Breitbart Business Digest: What If Tariffs Lower Prices?

And when the absorbing happens on the exporter’s side of the Pacific, U.S. prices don’t rise the way the Fed expects. It uses Chinese customs records from the 2018–2019 trade war and finds that, contrary to the headline data, Chinese firms cut prices in response to Trump’s tariffs. The so-called “full pass-through” we see at the product level—where prices look flat until you add in the tariff—is just an illusion created by low-price firms exiting the U.S. market.

Author: John Carney, John Carney

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