S&P | Tariffs: Retail & Consumer – It Will Hurt U.S. Consumer, Retail & Restaurant Companies To Varying Degrees

A universal tariff has not yet been announced but could only add to higher costs for consumer and retail companies. It is unclear if and how long these tariffs will be in effect, but we examine the potential implications for the consumer products and retail and restaurant industries.

• Price increases will be harder to pass along to the consumer this time around because of the recent inflation cycle and already weak consumer environment.
• Companies cannot rely solely on price increases to mitigate the extra costs imposed by tariffs and retailers will ultimately have to decide how much they can and will pass on to the end consumer.