'No choice but to raise prices': Tariffs squeeze businesses as White House hails inflation data
Inflation remained stable last month, according to new data from the U.S. Department of Labor, and the showed consistent price increases in July compared to June.
Karoline Leavitt, the White House press secretary, said, "The America First economic agenda is working."
The White House promoted the report, which showed declines in fuel and food prices, and shelter costs growing at their slowest rate since 2021. However, Alex Jacquez, chief of policy and advocacy at noted, "I think, clearly you can say: yes, we are seeing an uptick in tariff exposed goods." The report highlighted significant monthly increases in prices for furniture, tires, pet products, and shoes, with more potential increases expected.
Jacquez added that this could be the calm before the storm.
"We saw an analysis for Goldman Sachs that businesses right now are eating somewhere of 50, 60% of the tariffs, but they expect that to change quickly and pass through as much as 70% of these costs as the year goes on," Jacquez said.
President Donald Trump criticized Goldman Sachs in a arguing they are not giving him credit for the economy.
Meanwhile, Matt Hassett, founder and CEO of expressed concerns about the impact of tariffs on his business.
"We've held off on big price increases, but there's not that much more we can do to keep those from happening," Hassett said.
He stocked up on products in April but anticipates having to buy at tariff rates as high as 60 percent soon.
"It's not nothing to pay that tariff, and we just really have no choice but to raise prices," Hassett said.
When asked about the concerns of Hassett and other small business owners, Leavitt said, "The White House's message to our small business owners across the country is you have never had a better ally or friend or supporter in this White House than President Donald Trump, who is a businessman himself, who understands your concerns and who wants to restore wealth back to our country through the powerful use of tariffs."
Core inflation, excluding food and gas, remains above the Federal Reserve's target, which could influence the next interest rate decision in September.
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