Tariffs and Rising Prices in 2025

Tariffs have remained at the forefront of driving rising consumer prices in 2025 with Federal Reserve Chair Jerome Powell calling them "simply inflationary." Levies on neighbors and major trade partners Mexico and Canada, along with China are making imported items more expensive for U.S. businesses which ultimately end up hurting the consumers. The Federal Reserve's elevated inflation forecasts reflect growing unease, while some economists are suggesting that these prices hikes might be short lived. As of now, economic uncertainty and tensions regarding trade policy continue to weigh on markets.

The potential ripple effects of tariffs ultimately creates uneasiness for both businesses and households alike. As seen by costs increasing for crucial items such as steel and aluminum, everything from cars to home building expenses are increasing. Although the administration sees these measures as a broader part of their strategy, many are questioning whether the higher prices could undermine the economic gains that might emerge. It will be interesting to continue to watch how the administration uses tariffs and if we as consumers can expect to see a decrease in prices this year at all.

Link: https://www.cnbc.com/2025/03/20/tariffs-are-simply-inflationary-economist-says-heres-why.html

Are we Heading into a Recession?

    With trade tensions rising and traders betting on a cooling market, some

speculate that we could be heading into a recession. One factor in some of these

warnings is the decline in consumer confidence, which according to the

University of Michigan’s consumer survey has declined by 10.5%. This can impact

retail sales, as consumers are less willing to spend money if they are unsure of what is to

come. Although consumer confidence is down the CPI numbers have not shown any signs of dipping. Another factor is inflation in general is at 2.7% which is high compared to the 2.5% forecasted by the FED.  The warning signs for a recession are not cohesive across the board, with Job openings and household spending holding steady, showing that a recession is not necessarily shortly for certain. 

Are we heading into a recession? Here’s what the data shows

Amid Trump policy changes, the Fed takes the back seat

Can British Columbia Counter U.S. tariffs?

The British Columbia government has introduced the Economic Stabilization Act, which would impose tolls on U.S. commercial traffic traveling to and from Alaska. Premier David Eby stated that he would exercise this power only if necessary, allowing the province to address potential economic threats from the U.S.

However, the B.C. Trucking Association strongly opposes the legislation, expressing concerns about disruptions to North American trade. They argue that additional fees or taxes could harm businesses relying on cross-border commerce. Association president Dave Earle pointed out that fewer than 10,000 trucks travel through B.C. to Alaska each year—a small fraction compared to the tens of thousands moving between Mexico and Canada through the U.S.

Source: https://www.cbc.ca/news/canada/british-columbia/trucks-toll-alaska-mexico-1.7483368