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Marketplace Morning Report

As tariffs increase prices, are consumers noticing?

Tracey Samuelson Jan 15, 2019
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Cars are prepared for distribution at a Ford factory in Dagenham, England.
Carl Court/Getty Images

Last year, the Trump administration imposed new tariffs on roughly $280 billion worth of U.S. imports — everything from solar panels and washing machines, steel and aluminum, and about half of what we import from China. In response, Ford, Coca-Cola, Walmart and other large companies have warned about the impact of tariffs on their bottom lines. But what effect are these tariffs having on U.S. consumers and households? The consumer price index, which tracks price changes across a wide selection of goods and services, is 0.3 percent higher now than it would have been without the tariffs, according to recently released analysis from the Federal Reserve Bank of New York. Researchers at Princeton University and the London School of Economics estimate the tariffs are costing the average U.S. household an additional $112 per year.

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