Economic indicators this week have showed new effects of President Donald Trump’s tariffs.<\/p>\n
This week the Producer Price Index, which tracks changes in sellers’ price points, surged unexpectedly.<\/p>\n
While the PPI does not explicitly include tariffs, it is one of several factors that show how price increases are directly tied to the costs of increased tariffs.<\/p>\n
For American consumers, this could mean there are still higher price hikes ahead for everything from groceries to clothing to vehicles.<\/p>\n
“I think the evidence is pretty much clearly showing that it is the importer that is bearing the cost of the tariffs.” Said Alex Durante, senior economist at the Tax Foundation. “And right now that is largely U.S. businesses.”<\/p>\n
President Trump has insisted he wants big businesses to eat the cost of tariffs. He has doubled down on social media, saying tariffs haven’t caused any problems for America.<\/p>\n
But new Goldman Sachs research projects businesses will pass on higher price increases come fall.<\/p>\n
“If you look at the pre-tariff import price, they have actually risen slightly. If a foreign exporter was absorbing the tariff, those prices would fall,” Durante said.<\/p>\n