Trump announces trade deal with South Korea featuring 15% tariff rate

Federal Reserve Chair Jerome Powell said on Wednesday that the central bank is seeing the “early beginnings” of tariff inflation on goods.

“They’ll cross the street in a group,” Powell said of companies raising prices together, citing as an example the price hikes on both washing machines and dryers that occurred during the first Trump administration, even though only washing machine imports faced higher tariffs.

Powell’s comments echoed some of what we’ve heard from companies so far this earnings season.

While companies haven’t hiked prices across the board, some with businesses most exposed to President Trump’s tariffs have noted that they will raise prices to protect margins and offset higher costs.

Procter & Gamble (PG), for instance, said on Tuesday it would raise prices by about 2.5% across its portfolio. Mondelez (MDLZ) also said it plans to raise prices, though with a “surgical” approach amid some signs of consumer stress. And L’Oréal affirmed plans to raise prices to offset higher costs from tariffs.

Graco Inc. (GGG), a Minneapolis-based industrial equipment manufacturer, said it waited to see what its competitors did on price before taking a price increase.

“That gave us the opportunity and the confidence to know that we could also do the same thing,” CEO Mark Sheahan said.

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