In Spite of Increasing Tariffs, US Import Costs DOWN in May — US Economic Numbers OUTSTANDING Overall!
US costs for imports were reported down in the month of May. This is in spite of liberal cries that the Trump tariffs were going to increase costs to consumers.
The Bureau of Labor Statistics (BLS) reported on Thursday that in May the costs for imported goods were down from the prior month –
Prices for U.S. imports declined 0.3 percent in May, the U.S. Bureau of Labor Statistics reported today, following an increase of 0.1 percent the previous month. Lower fuel and nonfuel prices contributed to the May decline in import prices. U.S. export prices fell 0.2 percent in May, after advancing 0.1 percent in April, 0.8 percent in March, and 0.6 percent in February.
U.S. Import prices fell 0.3 percent in May, the first monthly decline since a 1.4-percent drop in December. Import prices advanced 1.8 percent from December to April before the downturn in May. The price index for overall imports decreased 1.5 percent over the past 12 months, matching the drop in January. These were the largest over-the-year declines since the index fell 2.2 percent in August 2016.
Fuel Imports: Import fuel prices declined 1.0 percent in May, after rising 25.4 percent over the previous 4 months. Lower prices for both petroleum and natural gas contributed to the May decline. Petroleum prices fell 0.9 percent in May, after a 4.7-percent advance in April. The May decrease was the first monthly decline since a 15.3-percent drop in December. Natural gas prices fell 6.8 percent in May following a 51.1-percent decline the previous month. Overall fuel prices decreased 1.1 percent over the past year. The decline was driven by a 1.9-percent drop in petroleum prices which more than offset a 2.5-percent rise in natural gas prices.
The lower costs on fuel allowed the overall import costs to go down for the month. This is in the face of tariffs the Trump Administration put on China as a result of inaction from the Chinese in coming together on a trade agreement with the US.
Despite what all the liberal naysayers said about increasing tariffs costing Americans millions, the costs of imports are actually down.
Overall the US economy is in very solid shape –
Consumer prices are barely up at 0.1%. Unemployment stands at a 50 year low of 3.6% and 75,000 new jobs were created last month. Hourly earnings are up as well as productivity.