Import tariff-related price hikes haven’t hit consumers since businesses are dealing with them
Most auto makers, retailers, and other businesses are absorbing costs stemming from President Donald Trump’s tariffs rather than raising the price tags—providing relief to US customers.
With economists estimating the average tariff rate now at nearly 17%, up from 2.3% last year, importers such as General Motors, Stellantis, Nike, toy maker Hasbro, and even small florists are paying the rising costs.
Why?
They worry that price hikes would lose customers and instead take a blow to their profits.
GM says its net profit was down 35% last quarter due to tariffs, while Stellantis took a $350 million profit hit.
Sportswear Nike expects a $1 billion tariff drag this fiscal year. Hasbro anticipates $60 million in tariff expenses.
For now, tariff-related price hikes haven’t hit consumers since businesses are dealing with them. Some economists warn that it may not last.
America’s largest retailer, Walmart, has raised prices on items like bananas and BBQ grills to offset costs. Ford raised the price tags of its Mexico-produced car models.
Meanwhile, Trump’s new import levies have added $55 billion to taxes collected this year.