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Six months after President Donald Trump imposed significant tariffs on imports, U.S. consumers are shouldering 55% of the costs, according to a report from Goldman Sachs. The report, released Sunday (October 12), highlights that new tariffs could increase the burden on consumers even further.
Since April, President Trump has implemented tariffs on various goods, including copper, steel, aluminum, and some automobiles. Country-specific tariffs have also been levied, with rates as high as 28% on China and 16% on other countries. The Bureau of Labor Statistics has tracked a consistent rise in consumer prices since the tariffs' introduction, with the Consumer Price Index reaching 2.93% in August.
Goldman Sachs economists, including Elsie Peng and David Mericle, noted that U.S. businesses bear 22% of the tariff costs, while foreign exporters absorb 18% by reducing their prices to remain competitive. The tariffs have contributed to a 0.44% increase in core personal consumption expenditure prices, a key inflation measure for the Federal Reserve. This rate could rise to 3% by December, exceeding the Fed's 2% target.
White House spokesman Kush Desai stated that the administration believes foreign exporters will ultimately bear the tariff costs. However, Goldman Sachs' analysis suggests that consumers will continue to face rising prices. The report also notes that American companies are diversifying supply chains and onshoring production in response to the tariffs.
President Trump has proposed using tariff revenues, which totaled over $31 billion in September, to provide economic relief, including rebates to U.S. households and subsidies for farmers. The administration also plans to use some revenues to fund food subsidies affected by the government shutdown.
The Supreme Court is set to hear arguments on the tariffs on November 5, and the outcome could influence future tariff policies.