Despite rising costs for businesses, American consumers have so far avoided significant price hikes at the checkout aisle. In April, retailers’ and wholesalers’ profit margins shrunk by the most in almost a year, indicating that they bore the brunt of new tariffs. However, consumer inflation remained under control, with Walmart reporting solid sales while keeping prices low. This suggests that consumers are still mostly protected from the negative impact of tariffs on their purchasing power.
Source: https://www.bloomberg.com/news/articles/2025-05-16/are-prices-rising-because-of-tariffs-retailers-absorb-costs