Tariff Turmoil: Companies Brace for Price Hikes Amid Trade Tensions
The International Chamber of Commerce warns that tariff-induced price hikes could affect U.S. markets by Q3's end as companies deplete pre-tariff stockpiles. Businesses across various sectors face rising costs and evaluate how much can be shifted to consumers. Global companies plan price hikes across markets to mitigate U.S. sales impact.
According to the International Chamber of Commerce, the impact of tariff-related price hikes may soon hit U.S. consumers by the end of the third quarter. With stockpiles depleted, companies from diverse sectors like automotive and agriculture, which had shipped goods before the new tariffs, now grapple with rising costs.
Andrew Wilson, Deputy Secretary-General of the International Chamber of Commerce, revealed on Thursday that U.S. inventory levels are running a month higher than average, delaying immediate price hikes. However, as inventories dwindle, the anticipated spike in prices is looming as businesses strategize to keep inflation in check.
Major global retailers such as Birkenstock and Pandora are contemplating price adjustments across international markets. As trade policies cast uncertainty and consumer confidence falters, companies rigorously assess how much of the tariff costs can be transferred to customers, ensuring their bottom lines remain secure despite the economic shake-up.
(With inputs from agencies.)
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