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Dow Jones NewsApr 2, 2:30 AM UTC
DJ Will Tariffs Cause Prices to Rise? -- WSJ
By Chao Deng
Many economists say that tariffs ultimately cause prices to rise as importers are likely to pass on some of the additional cost to businesses and consumers. Tariffs on imported steel, for example, can make it more expensive for manufacturers of cars, home appliances and construction materials to produce those items. The manufacturers might pass along some of the cost, making those items more expensive for consumers.
Goldman Sachs expects that tariffs will push the Fed's preferred core inflation metric to around 3.5% this year, from 2.8% in February. The estimate is based on its assumption that President Trump will announce reciprocal tariffs averaging 15% across all U.S. trading partners on April 2.
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April 01, 2025 22:30 ET (02:30 GMT)
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