President Donald Trump’s proposed tariff strategy is expected to have an inflationary impact on the US economy. BMO Capital Markets managing director Simeon Siegel joins Catalysts to analyze the potential effects on the retail sector.
“Tariff to the consumer is just another cost that goes into the equation,” he tells Yahoo Finance, noting that “at the end of the day, the consumer’s either going to pay more, or they’re not.”
Siegel emphasizes that the focus should shift from which country is receiving specific tariffs to understanding which products will be affected, as this will ultimately determine the future trajectory of consumer prices.
He further notes that consumers won’t accept all price increases, drawing a distinction between consumer wants and needs. “Right now, if you had trouble selling your jeans at full price last week, I don’t think all of a sudden tariffs are going to give you a lot of permission to go back to that consumer and say ‘no no no, we’re going to add a charge.’ I think the consumer’s going to say good luck, you can try,” he tells Yahoo Finance.
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