The lack of significant impact of tariffs on inflation so far

In a series of recent announcements, President Trump has imposed tariffs on various countries, including a 35% tariff on Canada, a 25% tariff on Japan and South Korea, and higher tariffs on several other nations. However, it is important to note that the power to impose tariffs lies with Congress, and the President can only declare tariffs in an emergency.

The potential impact of these tariffs on the American economy is a topic of ongoing debate. One concern is that the tariffs may lead to inflation, as increased costs for imports could be passed on to consumers. However, as of May, inflation remained tame, suggesting no faster than normal price increases. Furthermore, the tariffs have not yet raised inflation, according to the latest data.

The stock markets, another key indicator of economic health, have not reacted significantly to the new tariff announcements. This could suggest that the markets view the tariffs as a short-term issue, or that they believe the economy is resilient enough to withstand their impact.

The U.S. imports almost half of its copper, and a 50% tariff has been announced on it. This could potentially have a significant impact on industries that rely on copper, such as construction and electronics. However, it is worth noting that some companies find ways around the tariff tax, and the U.S. government's capacity to collect this amount of taxes is patchy.

The oversight of tariffs in the U.S. is a collective responsibility shared by customs, financial, and legislative institutions. The U.S. Customs Administration, the Congressional Budget Office (CBO), the U.S. Department of Treasury, and related financial oversight bodies are all involved in monitoring and reviewing implemented tariff rates to ensure they remain within the limits set by Congress.

The most recent data shows that even in May, revenue from U.S. customs duties was significantly higher than it has been since the 1930s. This could indicate that the tariffs are having an impact on imports, but it is also possible that the tariffs may not have had enough time to affect prices significantly.

It is also worth noting that the legality of some of the tariffs is being challenged in the courts due to constitutional issues. The outcome of these legal challenges could have a significant impact on the tariffs and the American economy.

In conclusion, the tariffs announced by President Trump have the potential to impact the American economy, but their exact effects are still uncertain. The stock markets have not reacted significantly, inflation remains tame, and the U.S. government's capacity to collect tariff revenue is patchy. Oversight of the tariffs is shared by various institutions, and the legality of some of the tariffs is being challenged in the courts. It seems that the country has decided that Trump's tariff announcements are basically just noise, and that there's no reason to panic unless and until a tariff-driven recession actually materializes.