Economists estimate the trade war could increase costs by hundreds of dollars for the average U.S. household by increasing the prices of a slew of everyday products, but retailers are struggling to pass the tariff costs onto consumers, Axios reports.
American consumers have become accustomed to low prices, tying the hands of some of the nation’s biggest corporations, which have to balance customer and shareholder concerns.
Macy’s, for example, attempted to pass along tariff costs—making items like luggage, furniture and other household products more expensive—but the company faced consumer backlash and may reverse those hikes. Kohl’s has lowered Wall Street’s expectations for its profit margins—already pressured by other in-store promotions—as it tries to avoid any customer impact from tariffs.
Apparel prices haven’t gone up meaningfully in at least seven years, according to the Bureau of Labor Statistics’ consumer price index. For some items, like toys and cosmetics, prices have actually been trending lower, tightening the bind corporations find themselves in. Read the full story.
