For now business is absorbing the majority costs of tariffs, but soon to be passed along to consumers. (1) If business absorbs tariffs, earnings are reduced... stock prices negatively impacted. (2) If business passes tariff costs along in their pricing (consumers pay), that's inflationary... will lead to higher interest rates and currency loss of buying power. Negative in either case. Not generally recognized as of yet. Suggest trading accordingly. FWIW...
I think in the beginning the Corps absorb it but eventually it will be pushed out to consumers. On Bloomberg I heard of a strategy called Spreadflation. Spreading out inflation among items that weren't even effected by the tariffs.
Perhaps the worst part about an "inflation environment" is that companies raise prices willy-nilly on inflation... just because they can get away with it. Nothing positive about any of this.
It had to happen one way or another. There was going to be no way to service the debt without the US printing lots of money which would have led to high inflation. The fact that there are now tarrifs, and leads to cost increases on specific items, vs. a general increase in prices, is something that perhaps wasn't on the bingo card, but inflation was guaranteed given the finances of the government. I think the idea was to get manufacturing back to the US in specific areas that the US needs to be more self sufficient in. If you watch enough podcasts with Luke Gromen for example, you learn that China has already won any future war because the US can't produce any of its weapons without components from China. So forcing production to come back is a tactical move.