In the U.S. economy, there is a “balancing act” found within projected, planned and/or implemented wholesale-retail price increases. Just as there is a “balancing act” in managing tariffs.
Wholesale price increases, retail price increases and tariffs. Each being a conversation piece relevant to how price changes could/will affect consumer behavior. And demand.
As prices increase, consumer demand could in turn decrease. Companies opting to reduce the prices that consumers ultimately pay at the retail level, with an eye on jumpstarting demand – if demand had been deemed to have stalled out – can prove to be challenging when companies absorb higher-than-planned-for wholesale price increases. As is reflected through an increasing – or a stubbornly consistent higher-than-planned-for – Producer Price Index.
And those wholesale prices paid by corporations – prior to consumers purchasing products at the retail level? Those wholesale prices – paid by U.S. corporations – are driven up by tariffs.
“You can’t tax business. Business doesn’t pay taxes. It collects taxes.” – a quote by Ronald Reagan
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