The debate regarding the impacts of President Trump’s tariffs rages on. While there is a 30-day pause on his 25% tariffs on Canadian and Mexican imports, the threat of tariffs on European imports continues to linger. It's widely believed that levying additional tariffs will lead to inflation. Tariffs are paid by the domestic importers when products reach the United States. The extra costs resulting from the tariffs are often passed onto the customers in the form of higher prices on products in the consumer discretionary and consumer staples sectors. These higher prices fan the flames of inflation.
