Powell Says Tariff Costs Will Pinch Shoppers and Retailers

Federal Reserve Chair Jerome Powell said the financial burden of U.S. tariffs will be divided between households and merchants. Speaking during a question-and-answer session on Wednesday, Powell noted that consumers will shoulder part of the higher import costs, while retailers will absorb the remainder. Powell’s remarks come as businesses and policymakers continue to assess the broader economic impact of the 145% tariff on Chinese goods that took effect in April. His comments suggest the levies could pass through to prices, potentially affecting purchasing power and corporate margins.