What Trump's many tariff tools and sticky prices mean for consumers : NPR
NPR • • nation
Key Points:
- The Supreme Court ruled that President Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs was unconstitutional, but the administration quickly shifted to other legal authorities to maintain tariffs on imports.
- President Trump announced tariffs of 15% under Section 122 of the Trade Act of 1974, signaling continued use of tariffs despite the court ruling, with the administration emphasizing that the overall tariff policy remains unchanged.
- Economists and analysts, including those from Goldman Sachs and the Peterson Institute, agree that consumers are unlikely to see significant price reductions soon, as most tariff costs have already been passed on to consumers.
- The concept of "sticky prices" explains why prices may not drop quickly; businesses tend to
