Due to the tariffs, we are having higher prices on imported goods, right? Wrong!

From Sundance at the Conservative Treehouse we read:

In actuality the year-over-year prices of import products are actually dropping:


Despite two years of claims by the professional media that tariffs would lead to higher prices for U.S. consumers, as you can see above the reality is quite different.

In part this is driven by lower fuel and energy costs. Additionally, China is attempting to subsidize its affected industry; and several nations, including China, are attempting to retain export status by adopting monetary policies that devalue their currency. All of these efforts at countering the U.S. tariffs are having a deflationary impact.

Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in May following a 0.2-percent drop the previous month. Import prices from China have not recorded a monthly advance since the index rose 0.1 percent in May 2018. Prices for imports from China declined 1.4 percent over the past year, the largest 12-month drop since a 1.6-percent decrease in February 2017.

Import prices from Japan recorded no change in May, after a 0.1-percent decline in April. Prices for imports from Japan also recorded no change from May 2018 to May 2019.

The price index for imports from Canada declined 1.0 percent in May, driven by lower fuel prices.

Read more here.