Ernie Tedeschi: Effective tariff rate is 4 percentage points lower than a year ago

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Effective tariff rate down from last year

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Ernie Tedeschi: Effective tariff rate is 4 percentage points lower than a year ago — Effective tariff rate down from last year

The effective tariff rate is currently 4 percentage points lower than it was a year ago.

Ernie Tedeschi added that while there may still be lags due to passthrough effects working through the system, the basic level of tariffs has decreased compared to a year earlier.

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Ernie Tedeschi has recently commented on the contribution of computers and software, noting these categories add 25 basis points to core PCE inflation but are not the main driver of the current gap (link). He has also observed that California consistently posts stronger GDP and productivity growth rates than the U.S., even with its favorable climate (link). Both observations provide additional context to his analysis of current economic trends.

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