USA13 October, 20253 min read
Goldman Sachs Confirms Trump Forces U.S. Consumers to Pay Over Half of Tariff Costs
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
U.S. consumers are paying approximately 55% of the total tariff costs six months after implementation. American businesses absorb about 22% of tariff costs, while foreign exporters reduce prices by 18%.
5 outlets told this the same way.
Impact of U.S. Tariffs on Costs
Goldman Sachs’ latest analysis finds U.S. consumers are set to shoulder the majority of Trump-era tariff costs, with about 55% of the burden ultimately falling on households. U.S. firms absorb roughly 22% of the costs, while foreign exporters bear about 18% by cutting prices. One estimate also notes that about 5% of tariff costs are avoided.
“Goldman Sachs economists predict that by the end of the year, US consumers will bear 55% of the costs... with US companies absorbing 22% and foreign exporters 18% by lowering their prices.”
The pass-through is not instantaneous: import taxes are initially paid by U.S. firms, and exporters only absorb costs if they cut prices to stay competitive. This dynamic helps explain why current consumer price effects are measured but rising.
Goldman’s team also gauges that current tariffs have lifted consumer prices by roughly 0.44% compared with the 2018 episode when consumers bore nearly all costs. This indicates a broader sharing of the burden this time among consumers, companies, and exporters.
Impact of Tariffs on Inflation
Inflation pressures are building alongside the cost shift to consumers. Goldman’s analysis suggests tariffs are pushing inflation toward 3%, above the Federal Reserve’s 2% target. Parallel measures show the Consumer Price Index (CPI) at about 2.93% and the Fed’s preferred gauge around 2.7%.
Analysts estimate tariffs have already added a bit over 0.4 percentage points to inflation. Tariffs could lift consumer prices by roughly 0.44% now, with the inflation impact potentially rising to about 0.6% if tariff coverage expands. This reinforces that tariff policy is a significant contributor to price pressures.
Tariff Impact on Costs
The politics of “who pays” diverge from the economics of incidence. The White House claims foreign exporters will ultimately foot most of the bill, but Goldman’s breakdown shows U.S. consumers and businesses bearing the larger shares. Exporters only contribute by cutting prices to stay competitive.
“While the White House claims that foreign exporters will ultimately pay most of the tariffs, the import taxes are initially paid by US firms...”
Analysts also note that part of the relatively slower pass‑through so far reflects firms holding off on price hikes. This delay occurs both because it takes time to renegotiate import prices and because companies are awaiting a Supreme Court ruling on tariffs slated for November 5.
Impact of Tariffs on Consumers
Forward‑looking risks could intensify the hit to households. Goldman’s analysis, as relayed in coverage, warns that if tariff rates are extended or increased, consumer costs would climb further. NBC notes the consumer burden could reach 70% and the inflation effect 0.6% if additional products like furniture and kitchen cabinets are targeted.
The New York Post adds that the Goldman analysis does not incorporate Trump’s recent threat to double tariffs on China to 100%, an escalation that—if realized—would likely magnify the pass‑through. Newser emphasizes the breadth of goods already affected, from copper to cars, underscoring how expanded coverage could quickly touch everyday purchases.
Tariffs and Economic Impact
Policy messaging around the tariffs adds another layer to the ongoing economic discussion. NBC News reports that the White House plans to use some tariff revenue to fund food subsidies during the government shutdown. Officials also signal no intent to escalate tensions with China, aiming to calm markets.
“Meanwhile, the White House plans to use some tariff revenue to fund food subsidies affected by the government shutdown. Despite recent tariff threats, administration officials have tried to calm markets by indicating no intent to escalate tensions with China.”
In contrast, the New York Post highlights the administration’s claim that foreign exporters will ultimately bear the cost of tariffs. At the same time, it notes that import taxes are initially paid by U.S. firms in practical terms.
Newser provides a broader economic snapshot, showing the Consumer Price Index near 2.93% and the Federal Reserve’s preferred inflation measure at 2.7%. It emphasizes that tariffs contribute over 0.4% to inflation, framing the policy as adding to existing economic pressures.