Reported 2 days ago
President Trump's tariffs, while generating significant revenue for the government, are increasingly seen as a burden on corporate profits and a hidden tax on capital. According to Morgan Stanley's chief economist, firms are absorbing these costs without passing them onto consumers, leading to diminished profitability and a unique economic situation where strong consumer spending is contrasted by weak hiring. With the effective tariff rate at record highs, businesses are facing tough decisions regarding pricing and employment as inflationary pressures loom.
Source: YAHOO