Welcome to the News Hour. After months of delay and backroom dealmaking, the Trump administration has

imposed sweeping tariffs on nearly 100 countries, sending U.S. import duties soaring to their

highest levels in nearly a century. The new rates range from 10 to 15 percent for Japan, the EU, and the

UK that negotiated agreements, and as high as 50% on nations such as Brazil and India.

India's tariffs are scheduled to take effect in three weeks.

Meantime, many countries continue to work behind the scenes to negotiate more favorable deals.

To help break down the impact of the new tariffs and interpret some of the other signs we're seeing across the economy,

were joined again by Diane Swank. She's chief economist at KPMG. That's the global consulting and accounting firm. Diane, it's always great to see you. So the Yale Budget Lab ran the numbers

and found that the average effective tariff rate is now about 18%. That's the highest it's been since

1933. Put that into perspective

for us. What does that mean for the U.S. economy overall? Well, what's really important is that

tariffs tend to be historically. They're a one and done, a bump up and a one-time increase in price

levels. But this doubling of tariffs,

basically doubling from what we saw in June, the effective tariff rate, that is not only going

to add to another increase in prices, which are only beginning to see the early signs of right now,

but it also, the tariffs are so large that they also squeeze profit

margins and that means cost cutting or layoffs. And so what we're worried about is a sort of

stagflationary kind of nature of these tariffs because they're so large and they're just

unable to be completely absorbed by either firms themselves or completely

passed on to consumers 100%. We're looking for inflation to pick up to about 3.5% by year

end and then stay elevated a little bit longer than we initially expected because of the sequential

nature of these tariffs and the fact

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