Goldman Sachs: US Consumers Bear Majority of Trump Tariffs Cost
According to a recent analysis by Goldman Sachs Group Inc., U.S. consumers are expected to bear a significant portion of the costs associated with President Donald Trump’s tariffs. The report, released on October 12, highlights how these tariffs are impacting pricing strategies across various sectors.
Distribution of Tariff Costs
Goldman Sachs economists predict that by the end of this year, American consumers will absorb approximately 55% of the tariff costs. This shift has been attributed to companies adjusting their prices to compensate for the additional expenses imposed by tariffs.
Cost Breakdown
- Consumers: 55% of tariff costs
- American Companies: 22% of tariff costs
- Foreign Exporters: 18% of tariff costs
- Evaded Costs: 5% of tariff costs
U.S. companies are facing increased costs, which leads them to raise prices for their products. Meanwhile, foreign exporters are adjusting their pricing strategies, offering discounts to mitigate the impact of tariffs. However, there is a small percentage of costs—about 5%—that may go unaccounted for, as companies attempt to navigate the evolving trade landscape.
This analysis underscores the financial burden that U.S. consumers face in the wake of tariff implementation, as the costs are indirectly passed down through price increases. The ongoing situation reflects broader economic trends and raises questions about the sustainability of such trade policies.
