Impact of Tariffs on Inflation

SOURCE www.breitbart.com
Despite concerns about tariffs leading to inflation, recent data shows that businesses are absorbing the costs rather than passing them on to consumers. Prices have remained stable, with margins contracting and inflation not being fueled by tariffs.

Key Points

  • Businesses are absorbing tariff costs
  • Little pass-through of costs to consumers
  • Inflation not being fueled by tariffs

Pros

  • Businesses are absorbing tariff costs instead of passing them on to consumers.
  • Prices have remained stable, with little pass-through of costs to consumers.
  • Inflation is not being fueled by tariffs, as evidenced by recent data.

Cons

  • Squeezed margins may lead to slower hiring and cautious pricing strategies.