Wednesday, 30 April 2025

Tariffs Blamed For Increase on Price Tags, But Is That The Real Reason?

100 Percent Fed Up
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President Trump’s new tariffs are sending companies scrambling.

They don’t know what to do now.

They want to keep their $100s of billions in profits. So, instead of paying the tariffs, and only making $99 billions in profits, they’re handing you the bill by raising prices, so we’re paying the tariffs (sort of.). The real goal is to get manufacturers back to the USA.

In the meantime, we’ll experience a short season of increased prices. But….

But does greed play a role?

Are companies using these tariffs as a reason to play the victim card?

They’ve been blaming cost hikes on tariffs since before “Liberation Day” rolled around.

On April 2, a 10% baseline tariff hit most imports.

By April 16, China was facing up to 245% on select goods, and autos took a 25% hit.

And with tariffs, corporations also have the excuse of inflation.

If any of them practice price gouging on top of it, will customers even notice?

Remember when food prices would go up around $0.40 once a year?

Business Insider reports:

Companies are expected to raise prices in response to President Donald Trump’s slew of tariffs.

While firms raise prices for many reasons, some were blaming hikes on tariffs long before Trump’s so-called “Liberation Day.” On April 2, he announced a 10% baseline tariff on imports from most countries, except Canada and Mexico. China faces even higher rates of up to 245% on some goods, the White House said on April 16. Autos are another area of focus after Trump announced a 25% tariff on all car imports into the US.

“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump said during his remarks.

Some economists have said that Trump’s tariffs — and the uncertainty with his overall trade policy — could lead companies to raise prices on the goods they produce.

“The tariffs are larger than forecasters expected, certainly larger than we expected in our upside case,” Federal Reserve Chair Jerome Powell said April 16 during a speech at the Economic Club of Chicago. “Our role is to make sure this will be a one-time increase in prices and not something that turns into an ongoing inflation process.”

Powell said the Federal Reserve is monitoring how much prices rise, which is still unclear.

Riddle me this. Why is it…

When inflation goes up = corporations shrug their shoulders and say “Can’t blame us” and raise prices.

But when inflation goes down = corporations quietly say, “I hope they don’t notice we’re leaving the prices high, because we’ve trained them to accept the high prices.”

Meanwhile, while corporations shrug and say “Wish there was something we could do about the price. Production costs have just gone up, it isn’t gouging” they’re raking in record profits.

Explain that one.

So many tactics are used to give the customer less for more. One of them is shrinkflation, and thankfully more are catching on to that trick.

A comment really sums up what we’re feeling:

The one thing i absolutely hate is they keep saying they are raising the price because everything is getting more expensive for them, yet they are making bigger profits than ever.

So obviously they didn’t need to increase the price.

So, is it tariffs?

Or greed?

Oh, and people weren’t happy about Cadbuy blatantly caught lying to them.

The video above, incase you didn’t watch it, shows the side-by-side comparison of a Cadbury egg. (Side-by-side pics can be very powerful). Beat they didn’t expect to be called out like that on a late night talk show.

This is a Guest Post from our friends over at WLTReport.

View the original article here.


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