Over half (54%) of companies surveyed by insurer Allianz say they will have to raise prices to accommodate cost of tariffs
A majority of US companies say they will have to raise their prices to accommodate Donald Trump’s tariffs in the US, according to a new report.
More than half (54%) of the US companies surveyed by insurance company Allianz said they will have to raise prices to accommodate the cost of the tariffs. Of the 4,500 companies across nine countries, including the US, UK and China, surveyed by Allianz only 22% said they can absorb the increased costs.
The unpredictability of US trade policy has also dented exporters’ confidence. The survey found 42% of exporting companies now anticipate turnover to decline between -2% and -10% over the next 12 months, compared to fewer than 5% before 2 April “liberation day” – when Trump unveiled his tariff policy.
They don’t have to raise prices. They are choosing to raise prices, and let’s be honest here, I doubt that they really needed a reason to raise prices at all. These retailers were just waiting for the opportunity.
And…I’d love to see how quickly these same retailers drop their prices when these tariffs are lifted.
Big companies can probably take the hit and reduce c-suite bonuses. Your mom and pops closing their doors because of this??? That’s by design.
Walmart closed the mom and pop places eons ago. Now it’s the boutiques selling 3 dollar sweaters for 300 cause they added a hole.
Someone made that point w/ autos, and I pointed out that even though by any standard of individual wealth they’re exorbitant, they still only work out to a couple dollars per unit. A 20% teriff on aluminum and steel would still obliterate per-unit savings if the c-suite stopped being paid at all.
Naturally. Mom and Pops aren’t creating value for the shareholders, so they just got to go.
Depends on the items. Some things have tight enough margins that they’ll have to be raised.
I expect some companies will try to cut costs by cannibalizing themselves in the short term by cutting workforce. Nobody intends to report to their shareholders that profits are down.
To be somewhat fair, businesses don’t need a significant event in order to raise prices. I consider this kind of “open collusion”. Nobody is meeting in secret to make these decisions but everyone is looking around the room and nodding at each other.
But think of the shareholders. They are the only ones that matter.