this post was submitted on 22 Mar 2026
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United States | News & Politics
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For a while, quite a few companies didn't want to lose customers so just ate the tariffs, hoping they'd go away quickly. The longer tariffs go on, the more companies will universally pass costs to consumers - so inflation from tariffs actually lag the tariffs a bit
I'm skeptical. Can you give an example of a company that hasn't raised its prices? Pretty sure everything has gone up.
https://www.foxbusiness.com/economy/us-businesses-consumers-shoulder-bulk-tariff-cost-burden-goldman-sachs-finds If you don't want.to give fox a click, "Goldman Sachs economists estimated that as of August, U.S. businesses were absorbing a net 51% of tariff costs, while American consumers were shouldering 37% of the burden. They also estimated that 9% of the cost was paid by foreign exporters, and about 3% was attributed to potential tariff evasion."
Companies that had stock saved up rather than JITing their domestic production, didn't want to scAre customers, so in first 6months or so of tariffs, only 37% of the increase was paid by American consumers, if it was all passed through, that number would be around 90%. I think moog made noise about not raising prices for awhile? A lot of companies split the difference. My point is that Trump has no credibility so there's a lag for all this nonsense and things will get worse
That makes more sense - I was thinking you meant they absorbed all the costs, and that definitely wasn't true.
I can see the shape of their plan - absorb costs for a while and slowly offload the costs they were absorbing onto consumers, so if by August they were absorbing 51% and then maybe by May it'd be 25% and then by next August it'd be almost nothing. They wouldn't want to spook customers with an immediate price spike, after all.