Top economist Mohamed A. El-Erian warns that the impact of U.S. tariffs on consumers has been delayed, not dismissed. Businesses absorbed costs and stockpiled goods to mitigate price spikes. Experts like investor Ross Gerber and Kevin O’Leary view tariffs as a consumption-based or value-added tax. The ultimate burden on consumers will vary based on the goods purchased.

El-Erian predicts a complex economic landscape with varying impacts of tariffs across sectors and companies. Businesses selling essential items with inelastic demand are likely to pass on full tariff costs. Companies serving lower-income consumers or with goods of elastic demand face tough choices. The real effects of tariffs are yet to be fully felt.

Read more at Yahoo Finance: Why Mohamed El-Erian Believes The Real ‘Tax’ Is Yet To Be Felt