Krugman: Clear Impact of Tariffs on Inflation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy AAPL?
Source: Benzinga
- Tariff-Inflation Link: Krugman argues that tariffs have increased U.S. inflation by 0.8 percentage points, with actual data confirming this clear impact on consumer prices stemming from trade policy adjustments.
- GDP and Tariff Revenue: His analysis reveals that tariff revenue as a percentage of GDP rose from 0.3% pre-Trump to 1.1%, indicating a direct correlation between policy changes and inflationary pressures in the economy.
- Core PCE Inflation Forecast: The current core Personal Consumption Expenditures (PCE) inflation forecast stands at 3%, which is 0.8 percentage points higher than the 2.2% estimate prior to the tariff increases, further substantiating the tariffs' impact on prices.
- Impact of Exemptions: Krugman notes that firms have utilized existing exemptions to mitigate high tariffs, suggesting that while some economists may have overstated initial threats, the actual outcomes align closely with expectations, highlighting the complexities of the policy landscape.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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