Tariff-fueled price hikes have arrived ?and hitting theseitems first
Source
American Shipper
Post Date
09/19/2025
For much of 2025, the Trump administrationswide-ranging tariffs defied fores thatthe import duties would drive up inflation. But that reprieve appears to beover, with economic data this week showing the tariffs are now pushing priceshigher.
The Consumer Price Index in August rose at a rate of 2.9% froma year ago, accelerating from the previous month as President Trumps tariffsfiltered through the economy. Heavily imported goods saw some of the steepestprice hikes last month, the data show. The increase represents the fastest rateof inflation since January, when Mr. Trump was inaugurated for his secondterm.
Although the tariffs were first announced inApril on what Mr. Trump called "Liberation Day,"their implementation was largely delayed as the administration negotiated newtrade deals with multiple nations over the ensuing months. That gave U.S.companies time to prepare for the new import duties, which are paid by U.S.businesses directly to the federal government.
Facing the prospect of sharply higher tariffs,some American companies scrambled to stock up on the imported goods and partsthey use in their business, postponing the need to raise customer prices.Others absorbed the levies instead of passing them along to consumers.
But many companies are now pulling back fromthose strategies, economic data shows. According to the Federal Reserveslatest "Beige Book" survey, which includesresponses from businesses, economists and other sources, tariff-related pricehikes were visible across the U.S. in August.
Beth Hammack, president and CEO of the FederalReserve Bank of Cleveland, recently told CBS News thatsome companies facing a hit to their profit margins have no choice but to startpassing on tariff-related costs to consumers.
Among the companies to say they are raisingprices for some goods as tariffs take effect are home improvement giantHome Depot, retailer Macys and camera maker Nikon.
"The pass-through from tariffs is gradualbecause some businesses may have held on to a greater share of the costs andmay have shared a greater burden of tariffs," said EY-Parthenon chiefeconomist Gregory Daco. "But there is a limit to how long and how much ofthat they can do ?so there may be more of a push to pass those costs ontoconsumers."
The White House said inflation remains low andthat Mr. Trumps policies are boosting the economy.
"Since President Trump took office, CPI istracking at a 2.3% annualized rate, consistent with low and sinflation," White House spokeswoman Karoline Leavitt said in a statementto CBS MoneyWatch.
Leavitt also noted that data on producer prices out this week pointto a decline in wholesale inflation. "As the Trump economic agacontinues to take effect, the trillions of dollars in private sector andforeign investments, historic tax cuts, massive deregulation and energydominance that the president is spearheading will fuel an economic boom,"she added.
