Tariffs go up → companies raise prices.
Tariffs get refunded ($128 billion) → companies keep the higher prices and raise them even more.
Classic playbook. Costs get passed to consumers instantly. Savings? Those take their sweet time showing up, if ever.
This is why "transitory" price shocks rarely reverse. Businesses don't volunteer to lower prices once consumers have already adjusted. Inflation ratchets up easily, comes down slowly.
Reminder: corporate pricing power is real, and it doesn't disappear just because input costs fall.
Tariffs get refunded ($128 billion) → companies keep the higher prices and raise them even more.
Classic playbook. Costs get passed to consumers instantly. Savings? Those take their sweet time showing up, if ever.
This is why "transitory" price shocks rarely reverse. Businesses don't volunteer to lower prices once consumers have already adjusted. Inflation ratchets up easily, comes down slowly.
Reminder: corporate pricing power is real, and it doesn't disappear just because input costs fall.
