Tariffs are still in place, generating revenue. Inflation has stayed in check, shelves are stocked, oil prices are low, grocery prices are down, and interest rates are about to be lowered. We just bombed Iran back to the Stone Age and Europe is finally paying their fair share for the war in Ukraine. Tough pill to swallow I’m sure.
On the surface of the U.S. economy, prices are higher. The latest inflation data out on Friday from the government showed a bigger uptick than forecast. On Thursday, Nike said it took a $1 billion hit due to tariffs and the fact that price increases have yet to be implemented.
Inside the U.S. economy, within distribution networks that manage inventory, there are fewer items overall due to the trade war, but more goods on which sticker prices are going up.
“We are now seeing multiple customers increasing pricing,” said Ryan Martin, president of distribution and fulfillment for ITS Logistics.
While price tags are placed on items at the manufacturer, Martin said over the past month his company has started re-ticketing “millions of units of products for many customers,” items ranging from apparel to consumer products in the warehouse being prepped for eventual delivery or immediate transport to stores.
Depending on the product, price increases range from 8%-15%, he said.
“This is creating additional inflation,” Martin said. It is happening in e-commerce as well, he said, though the price change is reflected online, not on the product.