President Trump has claimed that other countries and exporters in the United States will basically take tariff costs. Nevertheless, recent data shows that companies are about to overcome those extra expenses for American customers, which can raise prices.
For example, 76% of Texas manufacturers say they are planning to pass the expenses to consumers, while 50% say they will absorb internally, according to the recent survey from the Federal Reserve Bank of the Apollo Global Management, the Chief Economist of Torstein Slek and Dallas from Dallas. Large retailers have also warned that new tariffs on US imports are likely Run the priceThe
“The key point is that inflation will increase significantly within the next six months,” Slek wrote in a recent blog post.
In fact, traders have to plan a few months in advance for the account for the tariff, many companies are bothering these expenditures to determine their prices. According to the recent EY survey of more than 4,000 executives, two-thirds of the respondents say they may have to spend tariffs on customers.
A neutral policy institute in Washington, DC, the Center for American Progress in the American Progress states that the Economic results from the Trump administration’s tariff will be greatly reduced to low-middle income customers. According to the non -partisan Think tank, tariffs can spend an average of $ 5,200 per year for families.
Inflation is forward?
The manufacturers are hoping that their prices will rise by 3.6% in the next 12 months, which has increased from the top 2.3% in the last quarter of 2024, from the National Association of the producers, which quotes manufacturers’ concerns about the business.
“David Lofatus, chief executive of the industrial trade group, Electronic Component Industry Association, told CBS Moneywatch,” There is no profit to be able to eat tariffs. “” So the manufacturers pass to the distributors who go to the customers. “
A recent Gallop It has been found that about 90% of Americans are expecting the price to increase the price this year. Now, the tariffs still increase the price – the customer price index in March Increased by 2.5% on annual basisDown to 2.8% in February.
Nevertheless, many experts say that US tariffs, combined with revengeful systems in other countries, are likely to increase consumers in the months ahead.
“Now with the new tariff, we are looking for change in inflation with the new tariff, adding a headache to slow down the activity and economic growth of consumer,” said Daniel Vilhabar, economist Daniel Vilhabab, in an email.
Goldman Shutch analysts have assumed that the main inflation, which tracks consumer expenses by the personal spending spending index, stands at 1.5% this year, more than 2.6% in March. According to the investment bank, electronics and clothing are probably increasing prices.
Taxes paid by importers, which are required to pay the US customs and border security fees when receiving invoice at American ports. According to economists, as a result, US businesses usually pass by most or all expenses to customers through high prices.
Mr. Trump has strictly defended the tariff as a way to recover US makers in the worldwide trade, to recover, to recover the US manufacturers again. When asked at the NBC’s “Meet the Press” interview on May 4, he replied, “No. I think the tariffs are going to be great for us because it will make us rich.”
The President has also doubled in his message that foreign exporters, not US customers, will exploit higher tariff expenses. “China will probably eat these tariffs,” Mr. Trump said on April 25th about imposing 5% more tariffs on Chinese products in the United States with ABC News.
At the same time, Mr. Trump has apparently acknowledged that step-up tariffs can cost more for some products like toys. “Probably the kids will have two dolls instead of 30 dolls,” he said at the cabinet meeting of April 30. ” “And perhaps for two dolls will usually spend a few more money than they”
Some agencies already hiking the price
Mr. Trump announced on April 2 10% baseline duty In US imports, a few dozen other countries have announced a jerk of companies across different industries, along with higher “mutual” tariffs in other countries that they will raise prices to offset higher expenses.
For example, Power Tool Maker Stanley Black and Decker said in the earnings of April 30 that they had implemented a “single-cent” price increase on retailers that month, and they were monitoring another price rise later in the year.
“In terms of the current tariff rate, we are actively employed with our channel partners on the second price increase at the beginning of the third quarter,” Chief Operating Officer Christopher Nelson said in this call.
Consumer Products Giant Proctor & Gambaal CEO, Tidal Spice, Tampax, and other household brands told CNBC last month that the price raising of price is likely to be “likely” “likely” in the US market for April, but in the US market, the US market is well -known in the US market. Get it
“So the responsibilities should be gone again, the price must not rise again,” he said. “But I think we all agree that these responsibilities should be or even higher, but of course it will increase prices in the market, not just in our department, but in general.”
Chinese online retailers said in April Shane and Temu said they had planned Increase their pricesQuoting the United States to a Tariff For low -priced products. Related, Temu has stopped sending Chinese -made products to customers in the US after the so -called May expires D Minimis discountThe
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