Trump tariffs are likely to increase prices for US consumers, said the chairman of Fed

When President Donald Trump on Friday threatened new tariffs on Canadian products, Chairman of Federal Reserve Jerome Powell said the administrative tariff plan was likely to increase prices for US buyers and retailers.

The scale and duration of the tariff are still unclear but some of the import tax may reach consumers, Powell told an economic forum in New York City on Friday.

“We are at a stage where we are still very unsure about what will be deprived, for how long, at what level,” Powell said. “But it is likely that some of them will find the way. It will affect exporters, importers, retailers and to some extent consumers.”

Trump administration slapped 25% of goods tariffs from Mexico and Canada, as well as 10% rates for imports from China. New Rounds for Chinese goods duplicated the initial tariff set placed in China last month.

This size is widely expected to increase the price paid by US buyers, because importers usually deliver part of higher tax costs to consumers.

“Everyone estimates that some of the inflation effects from tariffs,” Powell said on Friday.

The statement from Powell in the annual US monetary policy forum marked an important prediction of the central banker of the country who was assigned to control inflation.

However, while recognizing the possibility of price increases, Powell said Fed’s response would depend on what actually happened.

The potential for potential price may not guarantee intervention, while a more sustainable increase can require action, said Powell, noting that economic power gives time given food to assess the impact.

“In some cases, where we think it is one time, the textbook is to see it,” Powell said. “If it turns into a series of things and more than that – [and] If the increase is greater – it will be important. “

Powell spoke for hours after Trump was on Social truth Threatening to slap tariffs, sanctions, and other steps in Russia in response to behavior in war with Ukraine.

The tariff may be necessary “Based on the fact that Russia is really ‘pounding’ Ukraine on the battlefield today,” Trump said.

Then on Friday, Trump told reporters in the White House that he could also charge new rates in Canada, including tariffs on wood and 250% assignments for dairy products.

Trump indicates the US can take a reciprocal action of the tariff of around 250% of Canada in milk immediately on Friday.

“Canada has torn us for many years with tariffs for wood and for dairy products, 250% no one has ever talked about the 250% tariff, which uses our farmers. So that will not happen again,” Trump said.

Potential steps can expand Trump’s confrontative trade policy outside a series of tariffs submitted this week.

The tariff policy can cause “some disturbances” for the US, Trump noted in his remarks in the White House.

Trump’s government has eases several tariffs against Canada and Mexico in the last few days.

Trump issued a one -month postponement for automatic related goods tariffs from Mexico and Canada. The steel was expanded immediately afterwards with an additional one-month pause for items from Mexico and Canada in accordance with the United States-Mexican-Canadian agreement, or USMCA, a free trade agreement.

In addition to tariffs, Powell said other economic proposals pursued by Trump administration, including steps that affect fiscal policies and regulations.

“The new administration is in the process of implementing significant policy changes,” Powell said. “The uncertainty around this change and the possibility of the effect remains high. We focus on marketing signals from noise when the situation develops. We are not in a hurry.”