Grocery Chains Are Passing Trump Tariff Costs on to US Consumers With Higher Prices: Report

Here in Australia, most of the inflation we encountered in 2024 was due to large retailers simply increasing their prices because everyone expected everything to be more expensive.

Another fun thing about tariffs. Those domestic producers that are being protected by tariffs will increase their prices as high as they can.

For example, let’s say an American company can sell a widget for $5 and a Chinese company can sell it for $4.

You slap a 100% tariff on the Chinese widget, now it costs the consumer $8.

The American company can now sell you the widget for the initial $5 and leave $2.99 on the table, or they can jack their price up to $7.99, be cheaper than the Chinese widget, and increase their profits while gesturing around vaguely at “market conditions”

End result, you pay more for the widget, more than it the foreign producer used to sell it for and more than the domestic producers used to sell it for.

Now imagine you make something that has dozens of inputs and that happens to every input.

Truly a golden age