Companies pass 37% of tariff costs on to consumers – and that figure is about to rise

KANIKA SINGH RATHORE,

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Companies have passed about 40 percent so far Donald Trump’s foreign import tariffs But consumerHowever, this figure may increase further.

Even big manufacturers are able to do this Bearing the many costs of the international levy have warned that if the situation continues, or gets worse, they will be forced to raise prices.

Since Trump’s announcement Of the sweeping global tariffs in April, companies have absorbed about 37 percent of the tariffs passed on to consumers, 9 percent to their suppliers, and 51 percent through August, according to Goldman Sachs research.

So far the real impact on consumers’ wallets has been limited, although sectors including the auto industry have warned that they cannot afford to protect their customers from further price rises forever.

This one comes after The inflation report published on Friday found that US inflation remains highHowever, prices rose less than feared last month.

Since Trump's announcement of sweeping global tariffs in April, companies have absorbed about 37 percent of the tariffs to consumers, 9 percent to their suppliers, and 51 percent through August, according to Goldman Sachs. Preparations can be made to increase it

Since Trump’s announcement of sweeping global tariffs in April, companies have absorbed about 37 percent of the tariffs to consumers, 9 percent to their suppliers, and 51 percent through August, according to Goldman Sachs. Preparations can be made to increase it ,reuters,

This has come to light from the report of the Labor Department consumer prices There was an increase of 3 percent in September from a year ago, which was 2.9 percent in August. Excluding food and energy categories, which are more volatile, core prices also rose 3 percent, down from 3.1 percent in the previous month.

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Such figures reflect a desire by corporations to keep their prices low, although many understand that investors will not accept narrow profit margins forever.

Analysts suggest the reluctance to raise prices reflects the hope by some that the White House will eventually roll back some of its steep foreign taxes – including on Chinese imports.

Michael McAdoo, partner in the global trade and investment group of consulting firm BCG, said the new York Times Many of his customers ate up Trump’s tariffs in hopes that the economic outlook would stabilize.

It comes after an inflation report published on Friday found that US inflation remains high, although prices rose less than feared last month

It comes after an inflation report published on Friday found that US inflation remains high, although prices rose less than feared last month ,EPA,

However, now, “some people are trying to suppress foreign suppliers, and some are trying to improve their own operations, and some are using price gouging,” he told the newspaper.,

Additionally, many companies that had stockpiled products or other supplies before the tariffs were implemented are now running out of inventory that allows them to buffer their price increases. This is especially true for small businesses.

“We will be doing another price increase very soon,” said Richard Rosenfeld, owner of Colorado-based tea company Two Leaves and a Bud. the new York Times,

“And I can’t imagine that we won’t have several rounds of price increases next year because all of these tariffs impact not only us but all of the suppliers that supply to us and supply to our suppliers.”

Uk