Summary
U.S. companies are starting to raise prices due to the costs from tariffs imposed by the government. This is happening as the labor market slows and could lead to more inflation. Businesses are passing these costs to consumers as they face increased financial pressure.
Key Facts
- Companies are raising prices to cope with costs from tariffs initiated by the Trump administration.
- Tariffs include a 15% levy on many countries and a 30% levy on China.
- Businesses like Home Depot and Procter & Gamble plan to increase prices on some products.
- The auto industry might also raise vehicle prices soon due to high tariff costs.
- U.S. businesses have absorbed over half the tariff costs, but more costs may shift to consumers.
- Goldman Sachs suggests consumer costs from tariffs could rise to 67%.
- The Consumer Price Index shows modest price movement, but other indicators suggest rising wholesale prices.
