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There's 'overwhelming evidence' tariffs have raised consumer prices, says Bank of America (www.businessinsider.com)

submitted 1 day ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Analysts at the Bank of America said tariffs have raised prices for consumers.

They wrote in a note that consumers have covered about 50% to 70% of the cost of levies to date.

This suggests tariffs will continue to put "upward pressure" on inflation, they said.

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[–] shalafi@lemmy.world 5 points 1 day ago* (last edited 1 day ago) (1 children)

I'm a bit surprised the importers are eating 30-50% of the cost. I didn't expect 1-to-1 price hikes, which lemmy told us would happen, but this generosity may not last.

Maybe they're eating so much cost in the hopes TACO does his thing and they can quickly get back to normal? No retailer wants to be seen as the "high price" store, or the "they gouged us" store. There was an economist predicting small and steady price hikes and I think we're seeing that.

Only way they could jam 100% cost down our throats would be collusion of obvious and historic levels, across a huge variety of competitors. Not gonna happen. The risk of back stabbing and leaks would be a non-starter.

Also, money says there are a dozen spreadsheets at each company showing that sort of hike would chill consumer spending worse than temporarily eating a chunk of tariff costs.

tl;dr: They'll get to 100%, but it will take some time.

[–] ayyy@sh.itjust.works 2 points 1 day ago

Some are betting on the courts forcing Trump to give a refund. Then they can just pocket that money.