On Friday, President Donald Trump threatened new rates on Canadian products, the president of the Federal Reserve Jerome Powell said that the administration tariff plan would likely increase prices for American buyers and retailers.
The scale and duration of the prices remain vague, but part of the import taxes will likely reach consumers, Powell told an economic forum in New York on Friday.
“We are at a stadium where we are still very uncertain of what will be priced, for how long, at what level,” said Powell. “But the probability is that some of them will find its way. It will hit exporters, importers, retailers and to some extent consumers.”
The Trump administration slapped 25% of prices on goods from Mexico and Canada, as well as tariffs of 10% on imports from China. The new series of tasks on Chinese products has doubled a first set of prices placed on China last month.
The prices of this magnitude should increase the prices paid by American buyers, as importers generally transmit a share of the cost of these higher taxes to consumers.
The president of the federal reserve Jerome Powell speaks at the forum of American monetary policy 2025, March 7, 2025 in New York.
Richard Drew / AP
“Everyone plans a certain inflation effect from prices,” Powell said on Friday.
Powell’s remarks at the Annual Forum of American Monetary Policy have marked a notable prediction for the best central banker in the country responsible for keeping inflation under control.
However, while recognizing the probability of price increases, Powell said that Fed’s response would depend on what is going on exactly.
A potentially temporary price of prices may not justify an intervention, while a more sustained increase may require action, said Powell, noting that the force of the economy offers Fed time to assess the impact.
“In some cases, where we think it’s a unique thing, the manual would be to look at him,” said Powell. “If it turns into a series of things and that’s more than that – [and] If the increases are greater – it would matter. “”
Powell spoke for hours after Trump Social truth Men to slap prices, sanctions and other measures on Russia in response to conduct in war with Ukraine.
The prices may become necessary “depending on the fact that Russia” beats “Ukraine on the battlefield right now,” said Trump.
President Donald Trump signs a decree in the White House Oval Office in Washington, DC, March 7, 2025.
Evelyn Hockstein / Reuters
Later Friday, Trump told the White House journalists that he could also impose new prices in Canada, including a wood rate and a 250% function on dairy products.
Trump said the United States could take reciprocal measures against the price of around 250% of Canada on dairy products on Friday.
“Canada has been getting us off for years on wood prices and dairy products, 250% nobody never talks about this 250% rate, which benefits from our farmers. So that will no longer happen,” said Trump.
Potential movements could extend Trump’s confrontation trade policy beyond a set of advanced prices this week.
The pricing policy could lead to “a certain disturbance” for the United States, noted Trump in his remarks in the White House.
The Trump administration has attenuated some of the prices against Canada and Mexico in recent days.
Trump has expressed a month for prices on goods related to Mexico and Canada. The withdrawal of the cut was widened shortly after with an additional one month break for the goods of Mexico and Canada in accordance with the agreement of the United States-Mexico-Canada, or USMCA, a free trade agreement.
In addition to the prices, Powell has mentioned other economic proposals pursued by the Trump administration, including measures affecting budget policy and regulations.
“The new administration is implementing important policy changes,” said Powell. “The uncertainty around these changes and their probable effects remains high. We focus on the analysis of the noise signal as the situation evolves. We are not in a hurry.”
