Uncertainty About Trade Has Been a Factor in Inflation Rising

On Friday’s broadcast of NewsNation’s “The Hill,” Rep. Beth Van Duyne (R-TX) stated that inflation has increased since the “Liberation Day” tariffs partially due to uncertainty about trade agreements as people waited to see what happened.

Host Blake Burman said that the pulling back of some tariffs, “feels like, and I don’t know if you see it differently, that this is an admission that the policy isn’t working and it’s driving up prices.”

Van Duyne responded, “No. I think what this is is a[n] administration that has its ears open, that recognizes how you negotiate. You’ve got to be able to pivot. You’ve got to be able to be flexible and understand that you can try one strategy and it has been completely successful, but they are trying one strategy, they’re also pulling back on some that aren’t working, as opposed to doubling down, which is what we see Democrats do with the Affordable Care Act. You’ve got an administration that recognizes, hey, we need to make sure that we are supplying an ease for the price of beef, for coffee, for bananas, for textiles, for some pharmaceuticals. … But this is the art of negotiation. It is not putting out one strategy and even when it’s not working, refusing to change it. This is showing how flexible and how responsive this administration is.”

Burman then asked, “Why do you think inflation went from 2.4% in March before ‘Liberation Day’ to 3% now?”

Van Duyne answered, “I think there [are] a number of reasons. And one we’re looking at when we were trying to get our tax bill passed and businesses that are trying to figure out if they’re going to invest, if they’re going to spend, if they’re not. You also had a number of countries, while they were waiting to find out if they were going to have a trade agreement with us.”

She added that trade policy under the Biden administration “was basically dead,” but now the administration is getting deals and has a plan.