Businesses are already trying to pass tariff costs onto customers, Fed report says

[BumRushDaShow]

Source: NBC News/CNBC

April 23, 2025, 4:03 PM EDT / Source: CNBC


Businesses dealing with the early stages of President Donald Trump’s tariffs are looking for ways to pass increasing costs onto consumers, according to a Federal Reserve report Wednesday.

As Trump ordered against-the-board levies on U.S. imports and higher duties on Chinese products, the Fed’s 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.

“Most Districts noted that firms expected elevated input cost growth resulting from tariffs,” the report said. “Many firms have already received notices from suppliers that costs would be increasing.”

Broadly speaking, the report, which comes out about every seven weeks, characterized economic growth as “little changed” from the March 5 report, though it noted that “uncertainty around international trade policy was pervasive across” the Fed’s 12 districts.

Read more: https://www.nbcnews.com/business/business-news/businesses-are-already-trying-pass-tariff-costs-customers-fed-report-s-rcna202667

---

Link to Fed REPORT - Beige Book

[True Blue American]

1. You can see it

All the special promotions are just cover ups so you do not see the actual price increases. I watched the same during the shortages.

[progree]

2. Au similar - "US economic output hits 16-month low in April, expectations crater" - S&P Global flash PMI

New data from S&P Global out Wednesday showed its flash composite PMI output index, which captures activity in the services and manufacturing sectors, fell to 51.2 in April, hitting its lowest level in 16 months.

Manufacturing activity rose to 50.7, up from 50.2 in March, while services activity fell to 51.4 from 54.4. Readings above 50 indicate an expansion in activity in the sector; readings below 50 indicate contraction.

More at mahatmakanejeeves thread in Economy Group - https://www.democraticunderground.com/1116100346

In reply #3 to that -- Sentiment fell sharply. Prices rose at the sharpest rate for just over a year. Lots of other bad recent surveys ... e.g. Richmond Federal Reserve's survey of manufacturing, and the Philadelphia Federal Reserve's nonmanufacturing business outlook survey, and the Philadelphia Federal Reserve's manufacturing business outlook survey, all of which were at best dismal

[BoRaGard]

3. "Ha ha. US consumer suckers. Ha ha." - Krasnov (R-Felon)

[Grokenstein]

4. One of my favorite international Blu-ray sources is listing a "tariff surcharge"

It's not a lot--$5.50 against a $60 set from the UK--but it's a sign of how dim donnie's idiocy will hit everyone.

[mdbl]

5. My grocery store is raising prices on food that isn't subject to tariffs

just because they have an excuse.

[Katinfl]

7. Retailers will raise the price on everything now.

Just because they can.

[elocs]

12. I guy groceries at Walmart each week and I just noticed prices went up.

For instance, avocados (product of Mexico) had been 70 cents each for months suddenly went up to 88 cents (which works out to about a 25% increase). But Sam's club 2 liter soda which had be $1 for many, many was suddenly $1.28 each. I'm sure there were others as well.

[Wonder Why]

6. And many of them are jacking up the cost independent of the tariffs.

[ruet]

8. Dead-End Capitalism.

Who do consumers get to pass their costs on to?

[Raftergirl]

9. My dryer bit the dust the other day. It was 18 years old. I also had to replace my washer in the early days

of the pandemic and all I could get was a compact washer, which I’ve hated from the get go. So we replaced both. We got $200 manufacturers rebate on the pair and another $200 store rebate. In stock so delivery will be tomorrow. Bought at a locally owned appliance store we have been doing business with for 30+ years. They have great repair service so it is worth it to us to buy from them, rather the have to rely on N independent repair person.

The total, minus store rebate, is only $1900 and that includes cost of taking the old machines. So with manufactures rebate it was be $1700. Not bad, imo.

[republianmushroom]

10. Surprise, surprise, are we really surprised ?

trump, do you want to guess now, who pays for tariffs ?

[Martin68]

11. Of course they are. What do you expect? Are businesses supposed to absorb the cost of tariffs and take a huge loss?