Once again, the fable that "tariffs cost the US consumer big big dollars" is........not true.
Prices paid to US producers for consumer goods fell sharply in January...
...finished consumer goods rose just 0.2 percent from December, with personal consumption goods excluding energy down 0.5 percent for the month and personal consumption goods excluding foods down 1.2 percent. The declines suggest retailers maintain limited pricing power and are absorbing rather than passing through cost pressures.
The consumer goods data undermine claims that tariffs are squeezing American households at the producer level. Durable goods prices were essentially unchanged from December, with passenger cars flat at zero percent, light motor trucks up just 0.1 percent, household furniture down 0.1 percent, household appliances up 0.2 percent, and home electronics unchanged. Both men’s and boys’ apparel and women’s, girls’, and infants’ apparel registered zero percent price changes for the month....
The category which has lots of inflation? Services, which includes casualty insurance and hospitality. Housing (rental or purchased) also pushed up a bit. Note that these items are NOT subject to tariffs....
Another day, another Democrat lie busted.
1 comment:
Yes, Americans pay the price for tariffs. Don’t be fooled by Dad29s rhetoric.
https://www.kielinstitut.de/publications/news/americas-own-goal-americans-pay-almost-entirely-for-trumps-tariffs/
The 2025 US tariffs are an own goal: American importers and consumers bear nearly the entire cost. Foreign exporters absorb only about 4% of the tariff burden—the remaining 96% is passed through to US buyers.
• Using shipment-level data covering over 25 million transactions valued at nearly $4 trillion, we find near-complete pass-through of tariffs to US import prices.
• US customs revenue surged by approximately $200 billion in 2025—a tax paid almost entirely by Americans.
• Event studies around discrete tariff shocks on Brazil (50%) and India (25–50%) confirm: export prices did not decline. Trade volumes collapsed instead.
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