Why You Haven’t Felt the Tariff Shock... Yet

📆This Week’s Topic

This week I am going to revisit tariffs. Last time we discussed the court case with tariffs and the ruling has been published. But, today we are going to discuss what has happened to tariffs in the last couple of months and what companies have done in order to protect consumers from the crazy inflation that comes from the tariffs. Since the Trump administration started to impose steep tariffs the U.S. Government has been pulling in roughly $30 billion in tariff revenue.

💳 Court Summary

As I said earlier the results from the court case about the steep tariffs is published. The court ruled that the International Emergency Economic Power Act (IEEPA) was no longer authorized to change or add tariff laws. This means that Trump will no longer be able to change tariff laws on his own, he will have to have congress vote on these new tariff laws allowing outside decision. This ruling will also disallow being able to invoke reciprocal tariffs. The case was first heard in the International Trade Court and then Trump appealed to the U.S. Court of Appeals which affirmed the previous court’s ruling. Then he appealed once more to the U.S. Supreme Court who was agreed to take the case. This case we be hold on November 5th, 2025.

📊 Statistics

When the tariffs were first put into place, there were lots of concerns of inflation with both consumers and buyers. But, it seems that this balance of costs taken by consumers and businesses are not created equal. 37% of the inflation caused by the tariff rulings have been affecting consumers through higher prices. The companies have made suppliers had to face 9% of the damage, while the took 51% of the inflation damage themselves. Even just the 37% is enough to complete to reverse the previous deflation. The chart below illustrates how the tariffs are affecting US (Domestic) goods.

🔚 Outcome

Currently, the companies are taking the bulk of the hit for these new tariff prices. Although, the bigger companies can be paying anywhere between hundreds of millions to billions of dollars in these tariff fees to the Federal Government. Companies are going to start increasing the amount of inflation that consumers see which means we may start to see a lot of inflation in the coming 3-6 months.

⛱ Effects To Consumers & Businesses

As I mentioned earlier, both consumers and businesses are taking pretty big hits due to the tariffs. Consumers are having it inflation from companies increasing the prices which contributes to major inflation. Companies & Suppliers are paying the fees themselves mostly with paying 60% of the fees and putting 37% on the consumers. Although, we don’t know how much longer these companies are going to protect us from these high prices.

⏳ Final Summary

In summary, the deciding court case is coming up soon. This case will decide if Trump is allowed to use the International Emergency Economic Power Act (IEEPA) to make changes to tariff policy and other tariff related laws. Previous courts have ruled that IEEPA is not allowed to be use to influence tariff laws, although Trump has appealed his case all the way up to the Supreme Court. Currently, consumers are being protected from the bulk of the inflation caused by the tariffs because suppliers and companies are absorbing the bulk of the inflation.

🙏Thank You & Important Information

Anyway, thank you so much for reading this edition of Friday Finance. If you have any questions or just interesting comments you want to share, just click the comment button in the sidebar or header to share something with the community. Anyway, have a great week and I will see you next week.

Jacob Gans

Friday Finance