TARIFFS Will Lead To Inflation!? NOPE!

So many talking heads crying TARIFFS will be inflationary,
but it’s mostly uneducated fear-mongering.

Let’s look at the cold, hard USIRYY and CPI data to figure out the truth behind this.

From March 2018 through September 2019, President Trump had eight waves of tariff announcements on C-H-I-N-A, plus some steel and aluminum ones on Mexico and Canada.

In order to combat these inflation worries, Trump did what he said he was going to do…
DRILL BABY DRILL.

For the first time since 1949, the US would be a net exporter of oil.

We can see there was a quick spike in inflation from stockpiling imports before tariffs were fully implemented, but inflation quickly plummeted nearly in half as the US became a net exporter.

Fast-forward to today, and coincidentally inflation is at 2.9% which is right around where it was when Trump imposed the tariffs during his last presidency. Funny how that works out, eh ;)

Trump has declared the US will DRILL BABY DRILL bigger than ever, which should lead us to believe that this time is NOT different and inflation will go down again.