Volume #1: Inflation, Eggs, and Tariff Wars—Republican’s Most Wanted!

Ever feel like your grocery bill is plotting against you? You’re not alone. Inflation is sticking around like that one guy who keeps asking for that plus one to the next party, and now, steel and aluminum tariffs are back in the headlines.

Meanwhile, egg prices might be on the rise again thanks to a new wave of avian flu leading to mass chicken killings. Just yesterday, I saw my mom get back from the grocery store holding half a dozen eggs, which she bought for the price of a dozen not so long ago.

What in the world really happening to the supposedly ‘most prosperous nation’ of all time, and how does it affect your wallet? Let’s break it down.

📉 Inflation: Cooling Down but Still Steaming Hot
The latest CPI report shows inflation easing slightly, but don’t celebrate just yet. While energy prices have dipped, food costs remain stubbornly high.

In January, inflation rose 3.1% year-over-year, with core inflation (excluding food and energy) holding at 3.9%. Grocery prices in particular are still up 1.2% from last month. The Federal Reserve is playing it safe, holding interest rates steady for now, but they have been cutting rates as of recently, and plan on continuing to do so this year and beyond.

In fact, the Feds September 2024 cut was the first one we saw in 4 years. While lower interest rates could make borrowing cheaper, they might also weaken the dollar and reignite inflation.

This would encourage people to borrow and spend more money, in which businesses could see higher costs due to increasing demand and struggle to maintain profits, potentially leading to slower wage growth or job cuts.

President Trump promised a solution to inflation from Day 1, so how do you think supporters feel after it’s been nearly 4 weeks after that?

“We are going to deflate inflation,” he promised at a California rally, but it seems as though inflation is deflating him. It appears the President is facing the same fate that brought down his competitor during the previous administration.

So far, Trump’s main reaction to this situation has been a reoccurring theme: Blame Biden. I mean, the administration left the Republicans with a mess to deal with, but is it really that much worse than people had anticipated?

There is a lot of uncertainty on what the president’s policies will mean in terms of inflation, but head of the Department of Government Efficiency and billionaire Elon Musk is planning to cut federal spending by $1 for every $7 spent by the government to bring inflation to zero.

🥚 Egg Prices: The Rollercoaster Continues
Remember last year when eggs were practically a luxury item? Prices had started to drop, but a resurgence of avian flu is threatening to push them back up.

Over 4.5 million chickens have been culled in recent weeks to contain the virus, reducing supply just as demand is rising. Egg prices have already climbed a staggering 15.2% from December to January, the highest since June 2015, and further outbreaks could send them even higher.

With supply chains still recovering, don’t be surprised if your routine Sunday omelet costs a little more in the coming months. If you’re looking for savings, consider bulk buying or switching to alternatives like liquid egg substitutes.

Think of the way firefighters control wildfires. Controlled fires kill trees around the raging inferno, stopping the spread of the fire to any potential victims and containing it, where it will eventually burn itself out. This strategy of not directly attacking the problem has been seen everywhere, even during the Napoleonic Wars to an extent in order to prevent the French dictator from winning anymore battles by avoiding direct conflict.

However successful this strategy has been on American chickens, it has still resulted in a staggering loss of life. Farmers in California have even been turning to local farmers for eggs. In LA, long lines of cars are spinning the blocks just to find some eggs.

But people don’t care about the excuses, and at the end of the day people are frustrated about the rising prices. This is something the Republicans will have to face before people go to the polls next fall.

🔨 Steel & Aluminum Tariffs: Trade War, The Sequel?
The U.S. is eyeing higher tariffs on steel and aluminum imports, citing unfair trade practices: looking at you, China. But the bigger issue might be how these tariffs affect Canada, America’s top supplier of aluminum and largest source of steel.

In 2023, the U.S. imported $17 billion worth of steel and $12 billion in aluminum from Canada. Raising tariffs could disrupt supply chains, making construction materials, cars, and even canned goods more expensive. Other countries, especially in Europe and Asia, might retaliate with their own tariffs, escalating trade tensions and slowing down global trade.

Although Trump had promised that consumer prices would not be raised due to increased tariffs, someone else has to take the hit for these excise taxes. Electronics, aerospace, or defense manufacturers could find it more difficult to export with a 25% tariff on aluminum, making military aircraft or armor plating in the United States more expensive.

An effort “for our great industries to come back to America” has come back to bite Trump on the foot, as the tariffs would hit our four biggest sources of steel according to the America Iron and Steel Institute: Canada (previously mentioned), Mexico, Brazil, and South Korea.

🔍 What This Means for You

• Inflation: Keep an eye on Fed policy—rate cuts could ease borrowing costs later this year but might also reignite inflation.

• Egg Prices: Buy in bulk when prices dip. It’s the best option since egg shortages have been prominent around the country. If anything, frozen eggs can be a budget-friendly backup.

• Tariffs: If you’re planning a big purchase (car, appliances), watch for price increases in the coming months.

The economy is like a giant game of dominoes—each policy decision knocks into another sector. Stay informed, adapt, and you’ll always be ahead of the game. See you next week!

📩 Got questions or topics you want covered? Reply and let me know!