Marketplace All-in-One Who pays for tariffs?
Jul 14, 2025
John Morgan, a writer for the Baltimore Banner known for his insights on housing and racial covenants, discusses the current landscape of tariffs and their impact on businesses. He highlights how companies are caught between absorbing costs and raising prices amid the new tariff environment. The conversation delves into the persistence of housing discrimination and efforts to eliminate outdated covenants. Additionally, they explore the complexity of U.S. national debt and its implications for the economy, shedding light on the challenges of forecasting financial futures.
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Tariffs Slow to Impact Inflation
- Companies are absorbing some tariff costs to avoid immediate price hikes for consumers.
- Tariffs impact will likely show up with a delay in inflation data, particularly in core goods prices.
Suit Import Tariff Negotiations
- Ken Gidden negotiated a 5% price increase on suits from Italy due to tariffs despite prior agreement.
- He faces a tough choice between accepting the higher price or risking losing merchandise for his stores.
Hiding Tariff Costs in Prices
- Catherine Reynolds passes tariff costs to customers by baking them into base prices, avoiding separate fees.
- This tactic prevents customer backlash as they don’t see tariffs explicitly itemized.