Companies Raise Prices, Cut Jobs as Tariff Policies Create Market Whiplash
- On June 5, Atlanta Fed researchers published a blog post showing that businesses expect to pass roughly half of tariff costs to U.S. consumers.
- This expectation follows an April 7-18 survey during which President Trump's 10% baseline tariffs and 25% auto tariffs were in effect, creating uncertainty.
- The survey found firms facing stronger demand planned to pass on about 51.1% of a 10% tariff and 47.3% of a 25% tariff increase to prices.
- The Fed's June 4 Beige Book indicated economic declines amid uncertainty, with several districts reporting stalled or reduced growth and cautious hiring.
- These findings suggest firms now perceive greater consumer price sensitivity and face challenges in raising prices without reducing demand amid ongoing tariffs.
26 Articles
26 Articles
Businesses Expect to Pass Along 50% of Tariffs, Fed Survey Finds
Business expect to pass through roughly half of tariff-related expenses to US consumers still reeling from the pandemic-era inflation surge, according to a new survey from the Federal Reserve Bank of Atlanta.
We finally got a detailed look at how America's businesses are managing through Trump's tariff whiplash
President Donald Trump's tariff policies are causing uncertainty for many small businesses.Andrew Harnik/Getty ImagesTwo new Federal Reserve reports showed how Trump's tariff back-and-forth has affected businesses.Firms reported higher prices and lower head count due to the uncertain trade policies.Business owners also told BI that the tariff whiplash is stunting their ability to plan.It's been difficult to get a clear view on how US businesses …
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Bias Distribution
- 55% of the sources are Center
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