Americans Largely Agree on Inflationary Effect of Tariffs

While there are few things that Americans from both sides of the political spectrum can agree on these days, the likely effect that tariffs will have on prices in the country is one of those things. According to a recent survey conducted by YouGov and The Economist, 70 percent of Americans, including 87 of Democrats and 57 percent of Republicans, believe that tariffs on foreign goods generally increase prices. Three percent of respondents think that tariffs have impact on prices, while just two percent of the 1,600 Americans surveyed think that they will actually lower prices.

Interestingly, despite 87 percent of Republicans saying that inflation/high prices are a very important issue to them and 57 percent agreeing that tariffs will likely increase prices, 63 percent of Republican respondents supported a blanket 25-percent tariff on imports from Mexico and Canada earlier this month. During the campaign, many economists have warned that Trump's suggested tariffs could have a significant impact on consumer prices in the U.S. and possibly re-accelerate inflation.