SweetTea
Diamond Member
- May 10, 2015
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Tariffs have not caused significant, broad-based inflation YET primarily because companies have absorbed costs into their profit margins rather than passing them to consumers, and inventory stockpiling delayed the impact. Additionally, tariffs often act as a tax on specific goods rather than a general price increase, and they can reduce demand, putting downward pressure on prices.
Yes, overall prices are expected to continue rising in 2026, driven by factors like tariffs and supply chain pressures, with inflation showing signs of picking up in early 2026 rather than cooling. While some sectors may see moderation, costs for essential goods like groceries, gas, insurance, and housing are likely to stay high or increase.
Spin away. First it was that tariffs are passed directly on to consumers. Now it is that companies are absorbing some of them. What they won't tell you is that foriegn importers and manufacturers have also cut prices and absorbed some as well.
Prices will rise because inflation won't be 0%. As I pointed out above, core CPI was lower 4th quarter 2025 than 4th quarter 2024, despite tariffs. Gas will not be higher once this conflict is settled.