pass through

“My outreach to business leaders suggests that the pass-through of tariffs to consumer prices is not yet complete,” said Federal Reserve governor Lisa Cook.

Officials allege that companies may have used pass-through arrangements with small businesses.

Lower earners can benefit from pass-through workarounds too, but the complexity might not justify the tax savings, said Rachael High Chamberlain, a tax lawyer in Florence, Ky.

The pass-through from tariffs to consumer prices has been smaller than many economists expected, she said.

"Unfortunately, rising regulated pass-through market and network related costs which are beyond our control, have made a tariff adjustment unavoidable."