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Wholesale Prices Closely Watched Ahead of Expected Trump Tariff Jolt
By Prathapan Bhaskaran - Apr 09, 2025, 04:06 PM ET
March Producer Price Index likely last one before elevated tariffs play havoc with input costs
The Producer Price Index for March 2025 scheduled to be released on Friday is expected to be the last one unaffected by the market rollercoaster that President Donald Trump’s global tariff wars have ignited. Although the White House has paused its punitive tariffs on most nations except those against Beijing for 90 days, the tariff uncertainty is expected to push up the prices across the board.
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The Bureau of Labor Statistics said in its last report that the seasonally adjusted Producer Price Index in February was unchanged. It broke a two-month streak of increasing prices that saw 0.6% increase in January 2025 and 0.5% rise in December 2024.
Final demand goods price
As the new tariff regime is expected to substantially increase the prices of goods, the prices of final demand goods for March will be closely watched. In February, final demand goods experienced a 0.3% spurt that was partly offset by 0.2% decline in final demand services.
The tariff regime that began with a 10% general tariff across the board on all trading partners including allies saw another bump up to varying reciprocal tariffs that ranged from 20% to 50%. But the tit-for-tat increases have persisted after China increased the tariffs by another 34% to 84% followed by Trump’s escalation to 101% and further to 125%.
The tariffs are expected to cripple global supply chains and push up input costs for industries around the world and the U.S.
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