According to Odaily, UBS Chief Economist Paul Donovan has commented on U.S. President Donald Trump's decision to postpone the tariff increase until August 1. Donovan suggests that this delay might mean the full impact of these new tariffs on prices will not be felt before Christmas, potentially extending into 2026. He explained that retailers typically stock up in advance for the holiday season, and the process from production to shelf involves the entire supply chain. Therefore, even if tariffs are implemented now, consumers may experience price increases later, easing some pressure on U.S. consumers in the latter half of the year.
Avoiding the cost pressure from tariffs during the year-end shopping season could help the White House prevent negative news. However, Donovan cautioned that any delay cannot completely prevent these tariffs from eventually affecting American households. He stated, "This is essentially a significant tax burden imposed on U.S. consumers. By the end of this year, inflation-adjusted real wages will begin to decline rather than rise, and that is when we will see the real issues start to emerge."