Limited Consumer Impact from Trump’s Tariffs Surprises Economists
Despite widespread predictions of inflationary pressure, the tangible effects of Trump’s tariffs on consumer prices remain muted. Federal Reserve Chair Jerome Powell noted only select electronics—primarily PCs and A/V equipment sourced from China—have seen measurable price increases. Retailers’ pre-tariff inventory buffers and timing delays are cited as key dampeners.
Automotive markets defy expectations entirely, with new car prices declining 0.2% in May despite 25% tariffs on imports. Research from Telsey Advisory Group confirms the anomaly: just 19 of 80 tracked consumer goods registered price hikes since mid-April, while 16 items became cheaper. The anticipated supply-chain shock has yet to materialize in most sectors.