Lost in the Epstein conspiracy theory flap: what really will bug consumers.. The impact is already beginning, and the full hit on consumers has not even hit the fan yet. Instead of the Epstein conspiracy theory obsessing the House of Representatives and dominating DC news, the GOP-controlled House should be focused on tackling constituent concerns if they care about their political futures. They are not. They are laying the groundwork for their defeat in the 2026 midterms, but in their loyalty to Trump, they have fallen on their own swords. The cost of some consumer goods has already risen. Trump's tariff policies have already impacted interest rates. Instead of handing their legislative responsibilities over to Trump, the GOP Congress should take back its power over tariffs and health care. These issues should include lowering, not increasing, the cost of Obamacare beginning this January, depriving the sick and elderly. and disabled of their health care provided by Medicaid beginning in November 2026. wrecking access to health care services for rural areas of patients, even those self-insured and paying ones. The impact of many of the health care policies backed by the GOP will be felt during and before the 2026 Congressional elections. TACO Trump's tariff policies have already impacted interest rates. The Federal Reserve has said it would have lowered the interest rate but for Trump's tariff threats, and now even inflation is creeping up with the threat of higher tariffs. rising from below 3 percent left by Biden to 3.7 percent this month. Gas at the pump prices are now near what Biden left them in January. And the actual tariff policies have not even taken effect...as Trump TACO's from one delay date to another.
A reality check:Inflation breakdown for June 2025 — in one chart
Consumer Price Index Summary - 2025 M06 Results
We do not have governmental price controls like the old communist style countries have and had. Trump's demands that domestic producers swallow the cost of tariffs will be ignored.
Here is why prices have risen. I am an importer. I care about margins, the difference between sales and costs. If I do not, I will go out of business. I am in business to make a profit. Even now, fear of being charged with tariffs means that before customs releases the product to me to sell, I have already been charged up front for the import tariffs, which I pay to the US government, just charged to me on delivery. If I don't pay the tariff, I don't get the product delivered I imported.. In anticipation of this, being charged so much up front, those who are responsible to their boards of directors or their owners, they increase prices to cover these up-front costs or take other means to compensate: lower quality, lay off workers, use more automation, charging new shipping and handling fees, same price for smaller contents in packages.. And, yes, it is business malpractice not to take this into to consideration and act accordingly.
When the Trump government crows about the billions their tariffs are already bringing into the treasury, what is really happening is that consumers will eventually get charged more to cover the anticipated increased costs of paying tariff duty. In short, consumers get screwed, and the treasury looks better. It is a cost shift that works like a tax on consumers ...and right now, importers and retailers are increasing prices to cover anticipated up-front duty charges caused by Trump's threats and some actual tariffs now in effect.
Here is the unanticipated fallout: One would think that the imported product would be so expensive, they could not compete with US domestic producers. That may happen, and they stop importing if it makes no business sense to stay in business in the US.. However, even 10 to 20% tariffs on imported goods will be passed on to consumers and still be sold on the shelves. Then domestic producers could see an opportunity to raise their prices to equal the once lower cost of manufacture of imported products, which are now having to pay tariffs and raising their prices to the retailers to recoup the import tariff cost.. Imported products that are produced abroad more cheaply are no longer a factor in market competition, thanks to the tariffs. This competition wth cheaper imports once forced domestic producers to keep their margins as slim as possible.. Instead, without competition from cheaper imports, some domestic producers are tempted to raise their prices to equal the retail price of imported products. This is not corporate greed so much as it is market forces at work based on competition in the market..and consideration of what their competitors are charging.
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