Goldman Sachs estimates Trump's proposed tariffs could raise US inflation by nearly 1%

President-elect Donald Trump has proposed new tariffs of 10% on Chinese goods and 25% on imports from Canada and Mexico. Goldman Sachs estimates these tariffs could increase U.S. consumer prices by nearly 1%, raising inflation concerns. Goldman's chief economist noted that a 1% increase in tariffs typically raises core personal consumption expenditures prices by 0.1%. This could complicate the Federal Reserve's plans for rate cuts, as inflation remains above the target of 2%. The proposed tariffs are linked to changes in immigration policy and drug enforcement. It is uncertain if they will be implemented as suggested, and some advisors view them as a bargaining tactic rather than firm policy.