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You can't have costs increase by double digit percent and not pass along at least some of that cost to consumers. A healthy business with normal competition that is not price gouging will have 15-25 percent profit margin at most. So if prices of raw goods go up by 15 percent because of tariffs, there goes a large chunk of profit. The higher the percentage of cost in raw goods and not labor, the bigger the impact.

Now, we have many industries that don't have normal competition and can price gouge--like 5 grocery chains that control 95ish percent of the market. We also know that they are willing and able to price gouge...the Kroger guy said it under oath...we kept prices higher than we needed for longer than we needed to increase profits.

Beef is already at record levels and the Brazil tariffs just kicked in. Wait till Starbucks decides it can gouge people who won't make their own coffee or go to a competitor.