Tariffs and inflation aren’t the same: What you need to know

Many confuse tariffs and inflation, but they impact prices in very different ways.

Transcript

00:00I will say, I think that there's a little bit of a misnomer at times between inflation in and of

00:05itself versus a hike in cost caused by a tariff. Inflation will consistently happen over time

00:11further and further because the costs to create that good go up. A tariff is actually something

00:16that actually only happens one time, right? The tariff is in place. It's 10%, say, and I have a

00:22bottle of water that costs 10% more than it did last year. That's a huge hike in prices. But unless

00:28that tariff goes up again to 20% or something like that, I'm not going to experience that

00:34costs down the line.