NY Federal Reserve finds a 'significant share' of companies saying they raised prices on goods not affected by tariffs
NY Federal Reserve finds a 'significant share' of companies saying they raised prices on goods not affected by tariffs
A “cover of uncertainty” as a result of whipsaw tariffs have led businesses to time price increases with an unpredictable tariff environment, economists say.
No shit Sherlock. That’s how tariffs work. An example is steel, which my wife deals with. Let’s say the price of Chinese steel was $100 per foot before tariffs. Now it’s $200/ft. Well the Canadian supplier who was charging $200/ft before the tariffs isn’t gonna keep charging that. Their product is vastly better than the Chinese product. They’re gonna charge $250+. They are incentivized to raise prices since a large portion of the market’s prices have gone up.
Everyone that even bothered to think about it for a single millisecond knew this was gonna happen.
You're giving corporations far too much credit. While that is a very textbook example of the drawbacks to tarrifs, the fact remains that companies will ALWAYS price gouge if they think they can get away with it. People are conscious of price increases, but we are terrible at noticing the difference between a 20% jump in prices vs a 50% jump. So companies are able to keep jacking up prices with minimal resistance. If people will complain the same amount for a small price jump as a large price jump, every company is going to just do the large price jump
It's like these fuckers were literally born yesterday.
Yeah, they did it during the pandemic too. We knew this would happen.
No? Really? Wow that was so unexpected
I for one am shocked!