U.S. businesses across multiple sectors are preparing to raise prices as the August 14 expiration date for the tariff truce approaches, according to a new Allianz Trade survey. The research reveals 52% of American firms plan to pass tariff costs directly to consumers, with only 12% willing to absorb the financial impact. This pricing pressure comes despite the Trump administration’s 90-day negotiation window, suggesting companies see the tariff threat as inevitable rather than hypothetical.
The survey highlights particular distress among exporters, with 42% anticipating declining revenues as foreign buyers resist higher prices. Small and medium enterprises face acute challenges, as illustrated by an eco-products retailer who told Time about struggling to maintain cross-border Amazon sales amid unpredictable costs. The compounding pressures of supply chain adjustments and inventory hedging have created what one analyst called “a perfect storm of inflationary pressures.”
With Walmart’s recent admission about being unable to fully buffer tariff costs, economists warn the cumulative effect could add 0.5-1.2% to U.S. inflation over the next quarter. The situation presents policymakers with a dilemma: extending the negotiation period risks appearing ineffective, while allowing tariffs to take effect would contradict administration claims about protecting American consumers. Market watchers note increased volatility in retail stocks as investors attempt to price in these conflicting dynamics.
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