The US economy has borne most of the burden of tariffs imposed by President Donald Trump , according to European Central Bank Governing Council member Fabio Panetta . “Foreign exporters seem to have shouldered a portion of it, estimated at around 10%,” he said Saturday in Venice. “Initially, the impact was absorbed by US firms’ profit margins, and was then partially passed on to consumers, who now...
The US economy has borne most of the burden of tariffs imposed by President Donald Trump , according to European Central Bank Governing Council member Fabio Panetta . “Foreign exporters seem to have shouldered a portion of it, estimated at around 10%,” he said Saturday in Venice. “Initially, the impact was absorbed by US firms’ profit margins, and was then partially passed on to consumers, who now bear about half of it.” Speaking at an annual Assiom-Forex event, Panetta highlighted that “overall, tariffs are estimated to have contributed just over half a percentage point to inflation, which remains above the Federal Reserve’s target.” Trump suffered a setback on Friday when the Supreme Court struck down the bulk of the levies he imposted last year saying he exceeded his authority by invoking a federal emergency-powers law. The president responded by imposing a 10% global tariff and pledging a raft of investigations that could allow him to enact more import taxes. Panetta also noted that tariffs have led to a significant geographical reconfiguration of trade flows. This includes a contraction of US imports from China, an increase in US imports from third countries such as Mexico, Vietnam and Taiwan, and a strengthening of China’s presence in alternative markets. “Today the world is tightly interdependent — no country can prosper for long by isolating itself,” Panetta said. In response to the SCOTUS announcement , Trump defended his tariff program saying it is essential not only to draw manufacturing back to the US, but as a foreign policy tool. “The US still holds a dominant position in critical areas such as technology, military capacity, and international finance,” and “for many countries, disengagement from the US ecosystem is simply not a viable option,” Panetta said. Yet the US also needs Europe, which “absorbs one fifth of US goods exports and 40% of its service exports, generates one-third of the foreign profits of US multinationals, and holds a substantial am...
Hispanolistic/E+ via Getty Images Vishay Precision Group ( VPG ) is an industrial technology designer and manufacturer, with its 3 key revenue generators being sensors, weighing solutions, and measurement systems. Sentiment has been negative for VPG post-earnings, with the RSI immediately pulling back from oversold territory as investors seem to dislike the most recent quarter, just after VPG hit ...
Hispanolistic/E+ via Getty Images Vishay Precision Group ( VPG ) is an industrial technology designer and manufacturer, with its 3 key revenue generators being sensors, weighing solutions, and measurement systems. Sentiment has been negative for VPG post-earnings, with the RSI immediately pulling back from oversold territory as investors seem to dislike the most recent quarter, just after VPG hit an all-time high at the start of the month. I believe that VPG's valuation is now slightly inflated after the recent run up, as the valuation is now slightly less attractive for an entry point despite a ~20% pullback already, but opportunities lie ahead for VPG. Hence, I'm rating VPG at a 'Hold.' Thesis There are multiple catalysts for VPG for 2026, with a big part of the next phase of AI being humanoids clearly benefiting VPG with their orders as well as potential margin expansion, which could lead to VPG generating more customers. This tends to lead to a long-term relationship since VPG is a B2B focusing on specialised products, as the stickiness and potential partnerships enforce VPG's moat. An emphasis on specialist sensors on humanoids for 2026 is a huge catalyst going forward, as the TAM for robotics is massive, especially compared to VPG's current size. VPG has rallied over the last year, with its stock price gaining over 75% despite a recent ~20% pullback directly post earnings. The rally was led with optimism for VPG's future with solid new orders from business development initiatives as well as being undervalued 12 months ago. Valuations are now rather mixed, which doesn't give a good entry point for investors, as the value play last year is no longer really a value play, as valuations are already higher than historical averages. Unless VPG soars to high valuations like the tech sector, which may be possible if their humanoid book-to-bill gains massive momentum. Though VPG isn't really an AI company, which means that it doesn't have AI valuations, a change in sent...