Impact of Tariffs at 0? Why Are Major American Companies Starting to "Stock Up"?
American media believe that the threatened tariffs by Trump have a minimal impact on the economy, but many large companies are starting to stockpile and assess the impact of tariffs on profits. Companies may pass on costs to consumers through price increases, leading to rising inflation, which also makes the Federal Reserve cautious. The impact of this uncertainty on the U.S. stock market trends in 2025 remains to be seen
Currently, the narrative in the U.S. media and financial markets suggests that the tariffs threatened by Trump have a minimal impact on the U.S., almost negligible. (See previous: Market expectations for a prosperous 2025: Is everything the best arrangement!?)
However, the reality is that many large American companies have already begun to "stock up" and have calculated the impact of tariffs on their profits.
Of course, companies can also pass on costs to consumers by raising prices, but this would inevitably lead to an increase in inflation... This partly explains why the Federal Reserve has started to become so cautious. (See previous: Powell begins to "warm up" for a pause in interest rate cuts)
What does this uncertainty mean for the performance of the U.S. stock market in 2025?