A tariff is a tax.
Prices can rise as a result.
But it’s not inflation. Inflation is an increase in the money supply.
Tariffs do not increase the money supply.
Discussion
Inflation is covert taxation.
I wonder if the economists intentionally decided to assign 2 different meanings to the word inflation to sow confusion. Inflation can mean prices going up. It can also mean money supply increasing.
I think we need a new word to describe prices going up.
You can read more about it here:
It was absolutely intentional; "price inflation" wasn't common & persistent before the 1970s. Banks didn't want folks reading into the money supply.
It doesn't even make sense. Look a baloon expanding (like money supply) and a baloon rising (like prices) and tell me with a straight face that inflation is the latter! 🤣
If anything, tariffs may reduce inflation.
US is in the unique in the world position to be able to issue any amount of fiat and get real goods and services for it. That is a huge advantage. The downside is it needs to keep 'printing' which causes inflation; that inflation however impacts everyone else more than it does the US.
I am happy with the tariffs as long as the trade war doesn't turn into a hot war. It does make the world fairer, just not in the way Trump intends.
Exactly