Minus notable price hikes in consumer goods since President Donald Trump began to push his tariff trade strategy, analysts have been looking for clues about the impact on consumers.
So far, the evidence of consumers paying significantly more is scant. But some reports indicate evidence is emerging that may provide more data to work with. The New York Times reported that companies that so far have absorbed tariff costs can’t do that much longer and appear ready to increase prices.
The Times also pointed to Commerce Department data released this week that highlighted prices going up on products like appliances, home furnishings, and toys.
The report also covered statements from companies like Adidas, Stanley Black & Decker, and Procter & Gamble that prices had just been hiked or would soon go up in direct relation to tariffs. Walmart also said it was near the point of increasing some prices.
There has been a lag in seeing much impact of Trump’s tariffs on products sold in the U.S. for a number of reasons. One of the big factors is that many companies had large inventories, which were not affected by the trade fees.
Harvard economist Alberto Cavallo, according to the Times, said the prices that did go up from tariffs since March weren’t enough for many people to notice.
“The pass-through at the retail level tends to be very gradual,” he said.
White House economic adviser Peter Navarro told Newsmax this week that there isn’t any solid evidence that Trump’s strategy has raised consumer prices.
Navarro also said that claims from some analysts and political figures that tariffs are a tax on Americans are faulty. He said tariffs bring a net benefit to America’s economy.
“It’s not a tax. It’s a tax cut,” he said. “We’re using the tariff revenues basically to fund partially the big, beautiful bill. And that turns a big, beautiful bill from being a possible addition to the debt into a reduction in debt by the tune of trillions of dollars.”
Trump this week ramped up his tariff strategy with trade fees on a new group of countries. Mexico was given 90 days to complete a new deal, which has been in the negotiating stage for several weeks.
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