task0778
Diamond Member
The St. Louis Fed study notes that tariffs haven't driven up consumer prices as sharply as some experts had predicted.
Right, so just saying it's inflationary isn't correct.
For now, they're (mostly) eating the cost, not passing it along.
Maybe they never will fully pass it along.
"Right, so just saying it's inflationary isn't correct." It does not say that consumer prices haven't risen at all, they have risen but not as sharply. So - tariffs have driven up prices somewhat, just not as much as some feared.
"Maybe they never will fully pass it along." Yeah, I kinda think they will if the tariffs are not lifted. Maybe not 'fully' but sooner or later we'll be paying more for the same thing. Eventually the consumers always take it in the shorts.
When government handouts for solar panels, for instance, hide some of the actual cost of the tariffed goods,
we're less likely see true customer declines in demand in reaction to higher import prices.
If gov't handouts occur, isn't that kinda counter-productive for why Trump levied tariffs on the 1st place? More revenue coming in and more expenditures going out (handouts). Where's the gain? AND, if the consumers see no price difference in the imported stuff then why would he/she switch to the higher domestic products that they ain't buying now? AND I see no incentive for American businesses to reshore their operations here.