Consumers Are Bearing The Majority of Tariff Costs

The PCE goods price data shows a clear shift upward in trajectory starting in January and suggests that most of the tariff cost so far is falling on the shoulders of households.

Tariffs are a tax that has to be paid by someone in the supply chain - the offshore producer, the wholesaler, the retailer, or the end consumer. With such an extreme hike in duties never seen in mode…