The Financial Times on October 5 that despite a moderate rise in overall U.S. inflation, the Trump administration¡¯s tariff policy is starting to push up U.S. consumer goods prices, ranging from containers to auto parts.

Title of Financial Times

Official data and corporate statements show that the price of a series of commodities that rely on trade has risen accelerated after enterprises cleared inventories and transferred customs costs to consumers.The report cited data from the U.S. Bureau of Labor Statistics stated that during the six months as of August, the price of audio equipment increased by 14%, the price of women's clothes increased by 8%, the price of tools and metal supplies increased by 5% - these commodities are mostly dependent on imports.

The article noted that six months ago, Trump announced the imposition of "reciprocal tariffs" on almost all countries, which shocked the market.Some retailers rushed to tighten imports before tariffs were introduced, while others protected profits by raising certain commodity prices.

Financial Times report

Citing imported goods data tracked by a Wall Street research company, the article reported that since April, 11 of 29 "soft-line products" (such as T-shirts and shoes), 12 of 18 "hard-line products" (such as bicycles and dishwashers), and 5 of 16 sporting goods have all been raised by retailers. "This shows that tariffs are having an impact and are causing prices to rise."

The article also said that most products of Ashley Furniture, the world's largest furniture manufacturer, have increased in price by 3.5% to 12% since October 5th. Todd Vanek, CEO of the company, bluntly said, "The ongoing tariff situation has brought huge cost challenges to the entire industry". Philip Daniel, chief executive of auto parts retailer AutoZone, also said that "the price increases could be even greater" as the impact of tariffs is fully apparent. According to a recent survey released by the Institute for Supply Management, industries such as food service, construction and utilities are all concerned about the impact of tariffs.

Financial Times report

The article quoted Nathan Hitz, the global chief economist of Citigroup, as saying that at present, American consumers only bear 30% to 40% of the tariff cost, and about two-thirds of the tariff cost is absorbed by enterprises. However, he predicted that the proportion of consumers' commitment will expand to 60% in the coming months, and "consumers will face more impacts".