Group 1 - Since the announcement of "reciprocal tariffs" by President Trump in April, U.S. businesses have temporarily coped with tariff impacts by stockpiling and sharing costs with upstream and downstream companies [1] - As of August 7, the trade-weighted average tariff rate imposed by the U.S. on all products globally has risen to 20.11%, significantly higher than the 2.44% at the beginning of the year [1] - A report from Harvard Business School indicates that from early March to the end of July, major U.S. retailers raised prices of imported and domestic goods by approximately 4% and 2%, respectively [1] Group 2 - Professor Justin Wolfers notes that tariffs appear to have shifted from "experimental" to "permanent," leading to anticipated price increases as businesses adjust their strategies [2] - Procter & Gamble announced plans to raise average prices of about 25% of personal care and household products by 2.5% to offset an additional $1 billion in costs due to tariffs [2] - Adidas CEO Bjorn Gulden indicated that new tariff policies will increase costs by $200 million in the second half of the year, leading to inevitable price hikes [2]

Group 1: Economic Impact of Tariffs - The implementation of new tariffs by the U.S. government has led to increased uncertainty in the economy and a clear trend of rising costs for consumers across various products, from coffee to household items [1][2] - As of June, U.S. consumers had already absorbed 22% of the tariff costs, with expectations that this will rise to 67% by October due to the ongoing transfer of costs from businesses to consumers [2] - The trade-weighted average tariff rate for all products in the U.S. has surged to 20.11%, significantly higher than the 2.44% at the beginning of the year [2] Group 2: Price Increases by Companies - Procter & Gamble announced plans to raise prices on approximately 25% of its personal care and household products by an average of 2.5% to offset an additional $1 billion in costs due to tariffs [4] - Retail prices for imported goods have increased by about 4%, while domestic goods have seen a 2% rise from March to July [3] - Companies like Mohawk Industries and Gear Drive are also planning to pass on tariff costs to consumers, indicating a broader trend of price increases across various sectors [4][5] Group 3: Consumer Behavior and Market Dynamics - Concerns about rising prices and potential inflation are leading to changes in consumer purchasing behavior, with some customers reducing their buying volumes [5] - The uncertainty surrounding tariffs is complicating operations for companies, with reports of a 50% decrease in inquiries from international buyers [5] - Companies are restructuring their operations to manage increased costs, including layoffs and discontinuing certain products to maintain profitability [5]