Emergency tariffs of 25% now, 50% tariffs in a week, on all Colombian imports.
Well, let’s see. In 2023, about 27% of unroasted coffee imports were from Colombia. Coffee accounts for 0.2% of CPI weights. Suppose fixed proportions hold in the very short term; then assuming 100% tariff pass through, we get a one time jump in inflation equal to .3 percentage points (on an annualized basis).
What about everyday expenditures? The AIER Everyday Price Index (EPI), which has been discussed here, covers about 37% of the CPI according to this working paper, and focuses on frequently purchased items. Assuming we can blow up the .2% of CPI proportionately to the AIER EPI, then the m/m one time jump in inflation is about 1.34 percentage points (annualized).
For all the people who stressed the import of “everyday” prices over CPI, this is the number for you.
Thanks, Trump!
Off topic – Trump and Iran:
https://www.dropsitenews.com/p/iran-war-neocons-trump
If personnel is policy, then war with Iran is not on the agenda.
Not the first headline suggesting that even Trump knows he was wrong to blow up the Iran oil-for-nukes deal:
https://www.timesofisrael.com/trump-said-set-to-tap-mideast-envoy-steve-witkoff-as-iran-point-man/amp/
The White House released an official briefing paper about the “Columbia Sanctions.”
Where will it end? Which Ivy League school will be next?
This is such an unnecessary Trump hissy fit. President Petro simply objects to transporting Colombians in chains in the cargo hold of military transports like cattle. Flying military jets into the country is an insult to sovereignty. ICE normally charters commercial passenger jets for deportations which are thousands of dollars an hour cheaper to operate than military planes.
It didn’t have to be this way. Petro said he has no objections to treating the deportations humanely as usual with commercial jets. Trump has intentionally used military cargo jets as a naked projection of military power. For Trump, everything is a scripted reality show.