What Next | Daily News and Analysis Why The Shelves Aren't Empty (Yet)
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Jul 28, 2025 
Justin Wolfers, a Professor of Economics at the University of Michigan, dives into the unexpected resilience of store shelves despite recent tariffs. He explores the complexities of trade agreements, particularly between the U.S. and Japan, while unpacking the disconnect between stock market reactions and public perceptions. Wolfers emphasizes the importance of hard data in understanding economic indicators and discusses the interplay between tariffs, interest rates, and political tensions on financial stability.
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Markets Adjust Before Shelves Empty
- Market prices rise before scarcity appears to prevent empty shelves during supply issues.
- Supermarkets rarely run out since they adjust prices to manage demand and supply.
Tariffs More Threat Than Solution
- Trump's tariff deals often just soften threats rather than solve trade issues.
- He changes proposed tariffs to lessen impact but keeps most concerns unaddressed.
Tariffs Distort Economic Data
- Tariffs distort economic data by causing pre-purchase stockpiling inflating spending measures.
- Spending surges don’t always reflect real domestic production growth during tariff uncertainty.