Economic Expert Breaks Down Unexpected Tariff Impacts On Prices

Talk of tariffs on products going in and out of the United States began this spring.  St. Cloud State Economist King Banaian joined me on WJON to discuss what affects, if any, we are seeing yet.  He expected an increase in price on some products but he says largely that hasn't happened yet.  Banaian says many of these companies are taking the cost out of their profits to pay for the tariffs, consequently the consumer hasn't been affected.

Another Round of Tariffs

Banaian says another rounds of tariffs were announced by the Trump Administration last week that could cause an increase in prices.  He says prices have gone up a little but not as much as expected.  Banaian expected inflation to move at a higher rate and prices to move higher than they have.  He says the affects of the tariffs have been milder than most economists would have expected.

Lack of Job Growth

The unemployment rate has ticked up a bit but Banaian says what's more concerning is the job numbers have revised down but a lot.  He says that means we've had a stagnant economy over the first quarter of 2025.  GDP growth checks in at 1.25% in the 1st and 2nd quarter combined.  Banaian says there is a reduction in the demand for jobs and a reduction in the amount of supply of labor.

Gas Prices and More

King and I talked about gas prices, travel and expected growth in the 3rd quarter.

If you'd like to listen to my conversation with King Banaian, click below.