Executives Report Calmer Tariff Outlook Amid Lower Rates

Benzinga

Executives are less worried about tariffs as effective rates have fallen well below earlier headline figures. New trade deals, legal challenges, exemptions, and supply-chain adjustments have eased the pressure, while Trump has begun rolling back tariffs on key food and agricultural imports. Firms are passing fewer costs to consumers and absorbing more due to strong margins.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Techies have grown calmer about tariffs after a year of concern, according to the Wall Street Journal.

00:06Companies are paying much lower effective tariff rates than the headline figures,

00:10with October's roughly 12% average, still far below the steepest rates announced earlier in the year.

00:15New trade agreements, court scrutiny of Trump's tariff authority,

00:18and company strategies like exemptions, price increases, cost cuts, and supply chain shifts

00:23have helped reduce tariff pressure.

00:25President Trump has begun rolling back tariffs on a range of food and agriculture imports,

00:29since cost of living concerns rise ahead of next year's midterm elections.

00:33Companies have passed a smaller share of tariff costs to consumers than in Trump's first term.

00:37Many large firms have absorbed the rest due to strong profit margin.

00:40For all things money, visit Benzinga.com.

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