According to Bloomberg and CNBC reports, many companies are currently absorbing the costs associated with the 145% tariff on Chinese goods, which took effect in April 2025. Despite initial expectations that businesses would raise prices to offset these tariffs, data from the Producer Price Index (PPI) indicates that companies have been eating the tariff costs for eight consecutive months, leading to ongoing margin pressures. Core producer price growth has declined to its lowest level since August 2024, reflecting this trend. Analysts suggest that this sustained absorption of tariff expenses may result in margin compression for companies that import products for resale in the United States during the upcoming earnings season.