the staff of the Ridgewood blog
Ridgewood NJ, Despite the media’s alarmist headlines predicting economic turmoil, inflation spikes, and market downturns, the reality tells a different story. Contrary to popular belief, tariffs are delivering tangible economic benefits, and the numbers prove it.
Inflation and Prices Are Dropping
Inflation has dramatically decreased from over 3% in December to under 1.4% this week, according to real-time alternative inflation measurement Truflation. Gasoline prices have plummeted to a four-year low, and egg prices have significantly declined. While many fear rising inflation, the real concern should be the possibility of an economic slowdown, not an overheating economy.
Global Trade is Adjusting to Reciprocal Tariffs
Countries like Israel and Vietnam are already lowering tariffs against the United States in anticipation of the Trump administration’s new reciprocal tariff program. The concept is straightforward: if a country imposes tariffs on U.S. goods, the U.S. will reciprocate. However, if they remove tariffs, they can avoid U.S. tariffs as well. This strategy is already prompting fairer trade practices.
Falling Treasury Yields: A Key Economic Indicator
Another significant impact of the tariff policy is the declining 10-year Treasury yield—a critical metric for the administration. While it has not yet dropped below 4%, trends indicate it’s moving in that direction. Lower yields mean cheaper borrowing for homebuyers, businesses, and the U.S. government, which needs to refinance trillions in debt this year.
The Economic Impact of Tariffs
Since the initial tariff announcements, the U.S. economy has experienced:
- Lower consumer prices
- Decreased inflation
- Falling Treasury yields
- Foreign nations reducing tariffs on U.S. goods
This is what economic success looks like.
A Non-Partisan Perspective on Economic Policy
This isn’t about political allegiance. The effectiveness of tariffs is based on data, not partisanship. I recognize that every administration has its strengths and weaknesses. The current policies, in my view, are beneficial to American citizens by creating fairer trade conditions and a stronger domestic economy.
Tariffs: Strengthening America’s Economy
While critics in the media will continue to push negative narratives, the facts remain: tariffs are working. They are leveling the playing field for international trade, supporting American jobs, and helping the U.S. secure lower interest rates on government debt.
Short-term market fluctuations may concern some investors, but the long-term benefits—such as job stability, affordable housing, and lower consumer prices—far outweigh temporary portfolio shifts. The U.S. economy is on a path to resilience, and tariffs are playing a pivotal role in this transformation.
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Can you please get your head out of your ass?
Inflation has remained elevated (if you look at legitimate data): https://tradingeconomics.com/united-states/pce-price-index-annual-change
Egg prices in particular are a terrible example, as their price fluctuations have been due to bird flu (which, given government layoffs, is harder to track and combat) as opposed to more systemic economic pressures.
Treasury fields falling are an indication that out of fear, people are selling equities and holding off on other investments, and instead buying the perceived safety of treasury bonds. When that happens, treasury prices go up and yield go down.
Please go take a basic economics class.
Oh FFS! The tariffs ARE working.
They’re working alright if tanking the market was the plan. He doesn’t exactly think things through
Excellent! At least someone is reading between the lines.
Its a buying opportunity.
Or a great day if you’re a short
The rest of the world has been taking advantage of us for too long. We’re leveling the playing field. No one thought Trump would go this big on tariffs and he’s going big. Name one person with the cajones to call out Canada. I’ll wait. Or Denmark, for looking the other way and giving Russia/China a veritable beachhead to attack the free world. I’ll wait. And if you think Trump’s going big now, wait till term three! God bless America.
What if “leveling the playing field” actuly hurts everyone involved, including Americans?
you never worried about that before?
Well, in the real world, where real decisions have to be made by real people (like Donald Trump), the unfortunate reality is that some people might, or probably will have to be, “hurt” in order to fix the real problems we face. Yeah, it’s not nice, but this isn’t a fairy tale. People may be asked to make sacrifices, your standard of living might have to be reduced (for a time), so what? We’re all entitled to nothing. You can slow down your joyride or go full speed off the cliff. It seems like some Americans are so entitled they’d rather choose to drive everyone off the cliff rather than have to pay a little extra for things, and if they can’t afford it — oh the horrors! — to go without. Thankfully the adults are back in the room.
Spoken like someone with nothing to lose. Those of us with something to lose are losing bigly.
Oooh it takes such big balls to call out Canada. Kind of like picking a fight with the Eagle Scout next door
People are very nervous, I talk to my friends that sell high-end cars. No one is coming in. The market is dead. People are going to keep their cars a lot longer now.
That’s a bad thing? Can’t wreck your luxury vehicle and get a new one delivered Prime Same Day? Booooo hooooooooooooo.