Import Tariffs Primarily Affect American Consumers and Traders - Union's Industry Profitability Determined: Pre-tax net profit of similar products sold to non-associates within the Union, as a percentage of total sales revenue, has been calculated to assess industry profitability.
In early April, U.S. President Trump initiated a trade conflict with numerous countries worldwide, imposing high import tariffs. One of the companies closely monitoring the situation is Allianz SE.
According to Allianz expert Ano Kuhanathan, the price increases due to these tariffs are particularly noticeable in categories such as coffee, beverages, consumer electronics, clothing, sporting goods, toys, and jewelry. The study also mentions that prices for breakfast cereals, sweets, and dairy products have increased.
The tariffs, however, are said to be "very unevenly distributed" across industries and product categories. Exporters have responded by reducing their selling prices for several products including animal feed, sugar, paper, snacks, frozen food, and pasta to absorb the additional tariff costs.
Despite few observable effects on demand, further price increases in the second half of the year may change this. Allianz Trade suspects additional opportunistic price increases by U.S. companies with significant pricing power.
Trade experts believe the price increases for U.S. consumers are likely due to strong domestic competition and price-sensitive consumers. U.S. importers are paying more for most other products, and U.S. consumers are paying more as well.
In a recent analysis, Allianz Trade predicts a slowed growth rate of retail sales in the U.S. next year, particularly in industries and product categories like aircraft, semiconductor equipment, and automobiles. Retail sales growth is expected to slow to just under two percent.
Ultimately, tariffs primarily impact U.S. consumers and exporters. While U.S. wholesalers may be able to maintain their higher margins and thus double their profits due to market structure, the overall economic impact remains to be seen.
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