SCSU’s Banaian; Tariffs Will Cause a Rise in Price of These Products
President Trump is expected to hand down extensive tariffs on numerous countries throughout the world starting today. St. Cloud State Economist King Banaian joined me on WJON. He expects the products that will be immediately affected include automobiles, electronics (cell phone, computers, etc..) and pharmaceuticals. Banaian expects those products to see an immediate increase. He explains many of those products are imported and involve the countries where tariffs will be increased.
Banaian says pharmaceuticals are the most imported product into the United States with automobiles and electronics close behind. He expects drug prices to be increased over the next few weeks if not immediately. Banaian suggests it may take 4 to 6 weeks to sift through the affects of the tariffs.
Prices at grocery stores have been on the rise over the past year due to inflation. Banaian doesn't expect the new tariffs to largely impact those prices. He says egg prices have returned to normal after a spike in February.
Gas prices have spiked recently. Banaian says a rise in gas prices isn't uncommon for the spring. He indicates a rise in gas prices from April to June is normal. Banaian expects a pull back from people in regards to travel, which he believes will limit the increase in gas prices this summer.
Banaian is concerned that the tariffs the United States puts on other countries will lead to additional tariffs being put on U.S. products. He says both Canada and the European Union have indicated they will do so. Banaian says the tariffs will bring more revenue to the United State Federal Government.
If you'd like to listen to my conversation with King Banaian, it is available below.
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