The article examines the early effects of US tariffs on the economy as they are actively being collected. The current effective tariff rate for China is around 12.6%. Preliminary data suggests corporations are primarily absorbing the cost increases rather than passing them on to consumers. This situation is indicated by a significant decrease in Producer Price Index (PPI) due to a drop in portfolio management fees, with price increases largely borne by businesses instead of consumers. In retail sales, non-tariff impacted categories saw growth, while those heavily affected by tariffs, such as big box retailers, are experiencing declines. This pattern reflects an initial front-running before tariff implementation, followed by a leveling off in prices and subsequent demand destruction due to higher costs. The article emphasizes the necessity of digging into economic data to gain a clearer understanding of how tariffs influence consumption and pricing behaviors.

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