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The trajectory is unclear in part because companies who face these higher import taxes don’t have to pass the costs on to their customers. They could absorb them, taking a hit to their own profit. Or they might find U.S.-made versions of the materials they need, hopefully at a similar cost.

A third option is to reduce the size of their products rather than charge more, a tactic that became popular among many consumer product companies when inflation spiked during the pandemic.

It’s called “shrinkflation,” and experts say consumers could see a resurgence as the trade war threatens to reignite inflation. Actually, not just shrinkflation (smaller size, same price) but its even sneakier cousin, “skimpflation” (same size, lower-quality materials or ingredients.)

In fact, many brands are already shaving net weight instead of hiking prices to deal with tariff cost pressures, according to DataWeave, which analyzes retail data. The average package reduction is 5%-6% with extreme cases reaching 15%-25%, the firm said in a June blog post.

Shrinkflation can be an appealing solution for corporate America because price-sensitive customers may be less sensitive to a bag of chips weighing 15.5 instead of 18 ounces. And it’s unlikely they’ll even notice that a roll of toilet paper has 312 rather than 340 sheets.

(FWIW, there’s nothing illegal about shrinkflation as long as companies are transparent about their sizes, although Democrats in the Senate did introduce a bill called the Shrinkflation Protection Act in 2024 that hasn’t gone anywhere.)

So what? While economists at Goldman Sachs predict companies will pass 70% of their tariff costs onto consumers, that doesn’t seem to be happening yet. But if a lot more tariff-related inflation is in fact just a matter of time, it could sneak up on us in various forms — some less obvious than others. This makes it all the more important to be on the lookout when you’re shopping.

Consumer advocate Edgar Dworsky, a former Massachusetts assistant attorney general, tracks size and ingredient changes on his websites, ConsumerWorld.org and Mouseprint.org.

Here are some examples:

•   A jug of liquid laundry detergent containing 132 ounces instead of 146 ounces (but still apparently covering us for the same 100 washes.)

•   A roll-on deodorant in its same tall cartridge, but containing about 9% less actual deodorant.

•   A box of macaroni and cheese that uses corn starch instead of butter and skim milk as a thickener. (Macaroni and Tease, anyone?)

Related Reading

Prices are Now Starting to Rise Because of Tariffs. Economists Say This Is Just the Beginning (CNN)

The Battle to Keep Consumers Means Smaller Packs of Cookies and Chips (The Wall Street Journal via MSN)

How Americans Deal With Effects of Tariffs Firsthand (Talker Research)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20250721SW

Earnings season is hitting full stride this week, with a diverse slate of industry heavyweights scheduled to give a broad view of the current business landscape.

Though only one of the big technology companies reports this week (most report next week), we’ll still be hearing from over 22% of S&P 500 companies. From auto manufacturers to defense contractors to airlines and hospitality groups, the diverse representation will help investors piece together a more complete picture of the U.S. economy and how tariffs are impacting their businesses.

Corporate earnings will likely dominate headlines, but some economic reports will also warrant attention. We’ll get updates on the housing market with new and existing home sale data, as well as regional economic surveys from the Philadelphia, Richmond, and Kansas City Federal Reserve banks.

(Despite the handful of regional Fed surveys being released, the central bank is now in its communication blackout period ahead of the rate-setting meeting next week.)

Economic and Earnings Calendar

Monday

•   June Leading Economic Index: This is an index composed of various economic indicators that have historically led changes in the broader economy.

•   Earnings: Alexandria Real Estate Equities (ARE), Domino’s Pizza (DPZ), NXP Semiconductors (NXPI), Roper Technologies (ROP), Steel Dynamics (STLD), Verizon (VZ), W R Berkley (WRB)

Tuesday

•   July Philadelphia Fed Non-Manufacturing Activity: The Philadelphia Fed’s survey of services executives in the region on business conditions and their outlook.

•   July Richmond Fed Manufacturing Activity: The Richmond Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

•   July Richmond Fed Non-Manufacturing Activity: The Richmond Fed’s survey of services executives in the region on business conditions and their outlook.

•   Earnings: Avery Dennison (AVY), Baker Hughes (BKR), Chubb (CB), Capital One Financial (COF), CoStar Group (CSGP), Quest Diagnostics (DGX), DR Horton (DHI), Danaher (DHR), Equifax (EFX), Enphase Energy (ENPH), EQT (EQT), General Motors (GM), Genuine Parts (GPC), Halliburton (HAL), Interpublic Group of Companies (IPG), IQVIA Holdings (IQV), Intuitive Surgical (ISRG), Invesco (IVZ), KeyCorp (KEY), Coca-Cola (KO), Lockheed Martin (LMT), MSCI (MSCI), Northrop Grumman (NOC), PACCAR (PCAR), PulteGroup (PHM), Philip Morris International (PM), Pentair (PNR), Raytheon Technologies (RTX), Sherwin-Williams (SHW), Synchrony Financial (SYF), Texas Instruments (TXN)

Wednesday

•   June Existing Home Sales: Most home transactions in any given month tend to come from the existing market, and as a result set the tone for the broader housing market.

•   Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

•   Earnings: Amphenol (APH), Boston Scientific (BSX), Crown Castle International (CCI), CME Group (CME), Chipotle Mexican Grill (CMG), CSX (CSX), Freeport-McMoRan (FCX), Fiserv (FI), General Dynamics (GD), GE Vernova (GEV), Globe Life (GL), Alphabet (Non-Voting Shares) (GOOG), Alphabet (GOOGL), Hasbro (HAS), Hilton Worldwide Holdings (HLT), International Business Machines (IBM), Lennox International (LII), Las Vegas Sands (LVS), Lamb Weston (LW), Moody’s (MCO), Molina Healthcare (MOH), NextEra Energy (NEE), ServiceNow (NOW), Northern Trust (NTRS), NVR (NVR), O’Reilly Automotive (ORLY), Otis Worldwide (OTIS), Packaging of America (PKG), Raymond James Financial (RJF), Rollins (ROL), AT&T (T), Teledyne Technologies (TDY), TE Connectivity (TEL), Thermo Fisher Scientific (TMO), T-Mobile US (TMUS), Tesla (TSLA), United Rentals (URI)

Thursday

•   June Chicago Fed National Activity Index: This is a monthly index put together that incorporates 85 indicators from four categories: production and income; employment, unemployment, and hours; personal consumption and housing; and sales, orders, and inventories.

•   July S&P Global US PMIs: These indexes track how purchasing managers across different industries feel about the business environment.

•   June New Home Sales: While only a minority of home transactions in any given month come from new constructions, these home prices tend to be more cyclical and give insight into developing trends.

•   July Kansas City Fed Manufacturing Activity: The Kansas City Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

•   Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Initial jobless claims have remained mostly steady, while continuing claims have increased of late.

•   Earnings: Allegion (ALLE), Ameriprise Financial (AMP), A O Smith (AOS), Blackstone Group LP (BX), CenterPoint Energy (CNP), Deckers Outdoor (DECK), Digital Realty Trust (DLR), Physicians Realty Trust (DOC), Dover (DOV), Dow Inc (DOW), Edwards Lifesciences (EW), Honeywell International (HON), Intel (INTC), Keurig Dr Pepper (KDP), Laboratory of America Holdings (LH), L3Harris Technologies (LHX), LKQ (LKQ), Southwest Airlines (LUV), Mohawk Industries (MHK), Nasdaq (NDAQ), Newmont Mining (NEM), Pool (POOL), Tractor Supply Company (TSCO), Textron (TXT), Union Pacific (UNP), Valero Energy (VLO), VeriSign (VRSN), Westinghouse Air Brake Technologies (WAB), West Pharmaceutical Services (WST), Weyerhaeuser (WY)

Friday

•   June Factory and Durable Goods Orders: These metrics give insight into underlying trends for leading cyclical indicators.

•   July Kansas City Fed Non-Manufacturing Activity: The Kansas City Fed’s survey of services executives in the region on business conditions and their outlook.

•   Earnings: Aon Plc (AON), Charter Communications (CHTR), Centene (CNC), Erie Indemnity (ERIE), HCA Healthcare (HCA), Phillips 66 (PSX)

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Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.