Businesses across the economy are passing increased input costs from tariffs along to consumers in the form of higher prices, the Federal Reserve’s latest anecdotal survey of domestic economic conditions — commonly referred to as the “beige book” — found. Higher costs from tariffs were reported by businesses in all of the Fed’s 12 regional districts, and many made the choice to raise prices as a result. “Many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges,” the Fed’s July beige book, released Wednesday, reported. Businesses are passing along tariff costs, Fed reports I've asked this question a couple times to Trump supporters about who pays the tariff but they never answer so I figured I'd do the research myself. It's good to know that we have a POTUS that ensures that we keep winning
Well, duh. I love how people think tariffs are some magical economic cheat code and no president or economist in the past 100 years has considered using them more broadly. But Trump, who still regularly brags about "acing" a dimensia test, was the one to finally figure it out.
I am absolutely shocked to hear that businesses won’t be “eating the tariffs” as lord Trump commanded, and us peasants will pay the tax. I mean, who could have predicted that struggling retail stores already with razor thin margins wouldn’t agree to sell all their items for a loss? No one could have seen this coming….
Already told my tale last month when my price of steel went up 23%. I raised my prices to my customer. They get to pay tariffs, not me.
Have you ever taken an economics class? Because if you'd had you wouldn't have doubts about the effect tariffs (or any cost increase) have on prices.
Which is what every single business owner with half a brain will do. Why would they suddenly become altruistic with prices?
They keep saying they can't raise the minimum wage because the business will pass it on to the consumer, why would this be different?
A certain person keeps sticking their foot in their mouth with their instant need to protect Trump at all cost
Because the economics of your industry and your company’s profit margins do not change. A tariff of 10% on things you import is no different than a material price increase of 10%. In either case the increased costs are passed on to the consumers to maintain business profitability. And in this thread we have a former sandwich shop owner that acts like he’s ignorant of these basic principles and yet we all know he was increasing prices as labor and food costs increased.
Lots of info how businesses bought extra inventory in prep for tariffs. Also need to confirm if customer spending is down which will help keep prices lower. And are companies absorbing the extra cost for now? It will take a little longer to see full impacts of trumps tariffs.
The ones that can, will. Business that can’t raise prices will be the ones in trouble. The people who think companies will “eat” tariffs come off just as delusional as AOC or {name your worst anti-business libbie}. Obviously it somewhat depends on what type of margins companies had going in. The biggest companies can boss suppliers around a bit or make large inventory moves (channel stuffing) to defer the pain. But that’s just biding time, in the end either prices go up or profit margins are compressed.
Does anybody think that price increases due to inflation won't be claimed by dems as being due to tariffs? We all know how the liberal media operates.
