Month: August 2025

Yes, Tariffs Are Raising Prices

Posted on by Lone Candle

“All taxes are paid by someone, and President Donald Trump’s tariffs are no exception to that rule. The question of who pays and in what amounts is likely to become even more of a focal point in the coming days and weeks, as the White House follows through on its threat to hit imports from dozens of countries with higher tariffs starting on August 1.

Economic data from the past few months, during which the Trump administration hiked tariffs on goods from Mexico, Canada, China, and elsewhere, provide a preview of what’s to come after the August 1 tariffs hit: Higher prices for Americans.

That is, of course, what economists say tariffs do. Raising prices is really the only function of a tariff—which artificially inflates the price of imported goods to make them less attractive than domestic alternatives. Economists will also tell you that’s not the whole story. They say that domestic producers often raise prices as well, since imported competing goods are now more expensive. They also say that tariffs on raw materials and intermediate parts—like the Trump administration’s levies on steel, aluminum, and the parts necessary to build a car—will push up the cost of building other, more complex goods, and those higher costs will be passed along to consumers in the form of higher prices.

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There have been “relatively quick price responses to tariff announcements,” report a group of economists connected to the Harvard Business School’s Pricing Lab, which tracks prices throughout the economy. In a paper updated earlier this month, the Harvard economists report that there’s been a “cumulative increase in imported goods prices since early March” of approximately 3 percent. The paper relies on data from four major U.S. retail chains.

Their data show that prices for both imported and domestic goods have climbed since Trump took office, with foreign-made goods increasing more quickly thanks to two noticeable leaps that occurred right after Trump’s tariff announcements in early March and early April.

https://reason.com/2025/07/29/yes-tariffs-are-raising-prices/

On Sanctuary Cities, It’s Trump vs. the 10th Amendment

Posted on by Lone Candle

“Over the past three months, the Trump administration has filed lawsuits against Los Angeles, Illinois, Colorado, New York state, New York City, and other places for the express purpose of forcing them to abolish their “sanctuary city” policies and start aiding the feds in rounding up undocumented immigrants and enforcing federal immigration laws.

But unless the U.S. Supreme Court rapidly overturns several of its own precedents, including a recent one from 2018, all of these cases will be constitutional losers for President Donald Trump. Why? Here is how the late conservative legal hero and long-serving Supreme Court Justice Antonin Scalia once spelled it out.

“The Federal Government may neither issue directives requiring the States to address particular problems,” Scalia wrote for the Court’s majority in Printz v. United States (1997), “nor command the States’ officers, or those of their political subdivisions, to administer or enforce a federal regulatory program.”

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federal agents still retain their own independent authority to enforce federal immigration law inside of sanctuary states and cities, just as federal authorities retain the independent authority to enforce other federal laws in states and cities. The key point under Printz is that it is unconstitutional for the feds to compel local officials to lend them a helping hand in carrying out the enforcement of federal law.”

https://reason.com/2025/07/31/on-sanctuary-cities-its-trump-vs-the-10th-amendment/