Richard Hudson, Representative of North Carolina, said that a recent economic report indicates tariffs did not impact inflation and attributed rising prices to government spending. The statement was made on the social media platform X.
“A new Council of Economic Advisers report shows tariffs had NO EFFECT on inflation,” said Hudson. “Imported goods prices are FALLING. Tariffs had no inflationary impact. Trump’s trade policy held firm — inflation came from elsewhere.”
U.S. tariffs on goods such as steel, cars, and appliances expanded significantly in 2025, raising trade tensions and concerns about delayed inflation as companies deplete stockpiles. According to Reuters, the Council of Economic Advisers and the Federal Reserve warn that recent import price declines may soon reverse as new tariffs take full effect.
Reuters reports that the Consumer Price Index (CPI) rose 2.7% year-over-year in June 2025, with core CPI up 3.0%. Much of this increase is attributed to tariff-driven price hikes on goods like electronics and furniture after months of subdued inflation.
According to Federal Reserve analysis, tariff hikes in 2025 have added approximately 0.3 percentage points to core goods Personal Consumption Expenditures (PCE) prices and 0.08 points to overall core PCE inflation. Pandemic-era federal spending contributed to the spike in CPI inflation to 8.6% by mid-2022.
Hudson, a Republican representing North Carolina’s 9th District since 2013, serves as Chair of the House Republican Conference and advocates for tariffs to support U.S. industries and fiscal restraint.
