Some companies held off on price hikes as Trump delayed tariffs. That ends soon.
Hershey, Procter & Gamble and Mondelēz have said price adjustments will soon start showing up on store shelves. For shoppers, that could mean higher prices for popular items like Bounty paper towels, Reese's Peanut Butter Cups and Clif Bars.
Numerous companies told analysts and investors on recent earnings calls that higher tariffs are going to hike costs. In many cases, that will translate to higher prices for consumers.
Concerns about inflation persist even though price growth has come down considerably from its heights during the Biden administration.On Thursday, the Federal Reserve's favorite inflation gauge climbed more than expected. The personal consumption expenditures price index, a measure of consumer spending on goods and services, rose 2.6% from a year ago. Analysts were expecting a rise of 2.5%.
Experts have warned that elevated tariffs would mean higher prices on consumers, but President Donald Trump's delays mean some of the most expansive and aggressive tariffs have yet to be implemented.
That changes Friday, when Trump's reworked global tariffs take effect after he suspended them in mid-April. Some are as high as 50% for countries like Brazil, while others are 15% to 30% for the European Union and countries like South Korea, Japan and India.
Proceeds from tariffs that Trump has already implemented are indeed bringing in additional revenue to the U.S. Treasury. In June, $27.2 billion landed into its coffers. In May, it was $22.8 billion.
And Trump and his administiration have stressed that tariffs can bring jobs back to the U.S. while generating revenue that can pay down the U.S. debt or end up in taxpayers' pockets.
"President Trump's tariff policies have drawn historic investments and opened up global markets for U.S. businesses," Commerce Secretary Howard Lutnick posted Wednesday on X.
Trump has also announced deals with a handful of major U.S. trading partners including South Korea, Pakistan, the E.U., Indonesia, the Philippines and Japan, though details of some of the deals remain largely unknown.
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