"Unsurprisingly, tariffs pushed up the prices of imported goods last year. Economic tracking shows that prices began climbing particularly after Mr. Trump announced sweeping global tariffs in April, reversing a trend of falling prices in previous months. The price effects from tariffs have, however, been somewhat smaller than many originally anticipated, partly because companies have been hesitant to raise prices for fear of losing customers."
"Unsurprisingly, tariffs pushed up the prices of imported goods last year. Economic tracking shows that prices began climbing particularly after Mr. Trump announced sweeping global tariffs in April, reversing a trend of falling prices in previous months. The price effects from tariffs have, however, been somewhat smaller than many originally anticipated, partly because companies have been hesitant to raise prices for fear of losing customers. That's... good? I wonder how long businesses and investors will be able to tolerate decreased margins."
Tariffs raised the prices of imported goods over the past year, with prices climbing notably after sweeping global tariffs were announced in April, reversing a prior downward trend. Measured price effects have been smaller than many expected. A key reason is that companies often resisted passing the full cost onto customers, fearing lost sales. That restraint limited consumer price inflation but compressed profit margins for firms. The durability of reduced margins is uncertain, and sustained tariff costs could eventually lead companies to raise prices or cut costs, affecting investment and business strategies.
Read at FlowingData
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