Marketplace All-in-One Who pays for tariffs?
Sep 15, 2025
Trade talks between the U.S. and China take center stage, especially regarding tariffs and TikTok's future. Despite economic worries, consumer spending remains strong, with wages taking precedence over savings. Recent tariff changes are impacting European alcohol exports, raising concerns about increased prices and market share loss. As certain import prices fall, foreign exporters seem eager to adjust, creating a fascinating dynamic in the marketplace. The conversation offers insights into how these factors shape consumer behavior and industry trends.
AI Snips
Chapters
Transcript
Episode notes
Import Price Index Reveals Tariff Burden
- The Import Price Index shows who actually pays for tariffs by tracking prices before tariffs are applied.
- Falling import prices mean foreign exporters are absorbing some tariff costs instead of U.S. buyers.
Foreign Firms Rarely Absorb Tariffs
- Most of this year, foreign exporters have not lowered prices to offset U.S. tariffs, so U.S. consumers and firms paid most costs.
- However, some categories show recent price declines, indicating exporters sometimes absorb tariffs to stay competitive.
Chinese Electronics Discount To Fill Capacity
- Chinese electronics makers have discounted prices after manufacturing moved away from China and surplus capacity appeared.
- Sudeep Saman says firms cut prices to fill capacity and avoid making products too expensive in the U.S.