Zincwarrior
Diamond Member
The Fed Beige Book is reporting that companies are already attempting to pass on tariff taxes to consumers. I am sure it will be fine.
As Trump ordered against-the-board levies on U.S. imports and higher duties on Chinese products, the Fedās Beige Book indicated how they plan to proceed. Companies reported getting notices from suppliers about rising costs, and they looked to find ways not to absorb the increases while noting uncertainty over the ability to pass them along to customers.
āMost Districts noted that firms expected elevated input cost growth resulting from tariffs,ā the report said. āMany firms have already received notices from suppliers that costs would be increasing.ā
Broadly speaking, the report, which comes out about every seven weeks, characterized economic growth as ālittle changedā from the March 5 report, though it noted that āuncertainty around international trade policy was pervasive acrossā the Fedās 12 districts.
Prices generally rose during the period, which included Trumpās April 2 āliberation dayā announcement of the blanket tariffs. Employment was ālittle changedā amid falling headcounts in government jobs.
āFirms reported adding tariff surcharges or shortening pricing horizons to account for uncertain trade policy,ā the report stated. āMost businesses expected to pass through additional costs to customers. However, there were reports about margin compression amid increased costs, as demand remained tepid in some sectors, especially for consumer-facing firms.ā
In the New York area, firms reported rising prices particularly in food and insurance along with construction materials. Manufacturers and distributors said they already are adding surcharges due to shipments.
- Businesses dealing with the early stages of President Donald Trumpās tariffs are looking for ways to pass increasing costs onto consumers, according to the Fed Beige Book report.
- Broadly speaking, the report characterized economic growth as ālittle changedā from the March 5 report, though it noted that āuncertainty around international trade policy was pervasive.ā
As Trump ordered against-the-board levies on U.S. imports and higher duties on Chinese products, the Fedās Beige Book indicated how they plan to proceed. Companies reported getting notices from suppliers about rising costs, and they looked to find ways not to absorb the increases while noting uncertainty over the ability to pass them along to customers.
āMost Districts noted that firms expected elevated input cost growth resulting from tariffs,ā the report said. āMany firms have already received notices from suppliers that costs would be increasing.ā
Broadly speaking, the report, which comes out about every seven weeks, characterized economic growth as ālittle changedā from the March 5 report, though it noted that āuncertainty around international trade policy was pervasive acrossā the Fedās 12 districts.
Prices generally rose during the period, which included Trumpās April 2 āliberation dayā announcement of the blanket tariffs. Employment was ālittle changedā amid falling headcounts in government jobs.
āFirms reported adding tariff surcharges or shortening pricing horizons to account for uncertain trade policy,ā the report stated. āMost businesses expected to pass through additional costs to customers. However, there were reports about margin compression amid increased costs, as demand remained tepid in some sectors, especially for consumer-facing firms.ā
In the New York area, firms reported rising prices particularly in food and insurance along with construction materials. Manufacturers and distributors said they already are adding surcharges due to shipments.
