Nearly 80% manufacturing firms plan to raise price on consumers. More alarmingly, nearly half’s of services companies- much larger component of US economy – wants to raise price too even though their products are less impacted by tariffs for now.
The suspected reason for price hike across all sectors of economy is that firms have to make up for loss of revenue in international market. Data from FactSet’s Geographic Revenue Exposure Survey shows that S&P 500 are very exposed worldwide. Take Chinas as an example, McDonald’s has over 6000 stores in China. Apple in 2024 sold 43 millions iPhones in China. China alone made up 7% of all revenue of S&P 500, which is nearly 4 times the trade deficit US has on China.
https://www.reddit.com/gallery/1kjbmm7
Posted by ExchangeSilver3379
12 Comments
No way…..
Which is why Q2 Q3 earning seasons will be “interesting.”
The President loves business, he wants big, beautiful business, so he decided to eradicate small business.
Wow
Watching the world implode…….
‘Shocked Pikachu face’
Man we are so screwed 😅
Soooo higher prices and layoffs?
He was elected because he is a business man and the country needed one to straighten things out. He also says he will TALK to businesses that pass the tariffs on to consumers cause they should be able to still make profits after absorbing the costs. Now now I get it. It all makes sense!
Of course raising prices but it’s also a big problem as demand that already very weak will become even weaker. Not a lot of business will survive. 80% tarriff is a death sentence for any small business who depends on China. In my opinion it’s much worth worse then 145%
At 145% you just fold as it’s not possible to do business but at the same time you take what you have and exit. While at 80% you might try to survive amd eventually will bleed all your money and savings and exit with nothing.
I wonder how much cash equity firms have on hand to distribute to people who will be withdrawing to pay the bills…
Duh.