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After a lag, US consumers are beginning to feel the pinch of tariffs

The Straits Times

|

August 04, 2025

Companies are starting to shift more tariff-related costs onto consumers.

- Sydney Ember

WASHINGTON - Companies are starting to shift more tariff-related costs onto consumers.

Many businesses chose to absorb the additional tax during the early days of US President Donald Trump's trade war. But evidence is emerging that they are running out of options to keep prices stable in the face of deteriorating profit margins, suggesting that the tariffs could have a more pronounced effect on prices in the months ahead.

Government data shows that prices rose in June on items heavily exposed to tariffs, such as home furnishings, toys and appliances.

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