WSJ
Recent experiences such as the onset of the pandemic and the inflation surge that followed have made companies more flexible and improved their ability to respond to economic shocks, he said. That has enabled managers to make fast supply-chain adjustments and well-informed pricing decisions. The clearest consequence of Trump’s tariffs has been higher prices for physical goods, from clothing to televisions and furniture. Tariff costs have added anywhere between $1,600 and $9,000 to new-car prices this year, according to Kelley Blue Book. Federal Reserve economists estimate that through February, the levies broadly lifted the cost of core goods—those excluding volatile food and energy categories—by about 3.1%. But most U.S. consumer spending goes to services—everything from housing and medical care to entertainment and airline tickets. So the increases in prices of goods caused by tariffs have overall had a far smaller effect on overall inflation. All told, the Fed economists put the tariff effect on core consumer inflation at about 0.8 percentage point.