Recent research from Goldman Sachs has revealed that the trade policies enacted during President Donald Trump’s administration have significantly impacted U.S. consumers. The investment bank’s analysis highlights that approximately 55% of the costs associated with Trump’s tariffs are now borne by American households.
Financial Burden on Consumers
Contrary to claims made by the Trump administration, which insist that tariffs mainly affect foreign entities, the reality is quite different. Goldman Sachs indicates that U.S. businesses absorb about 22% of the tariff costs, while foreign exporters only pay around 18%.
Inflation and Price Increases
Goldman’s economists estimate that the tariffs have contributed to a 0.44% rise in core personal consumption expenditure prices this year. Projections suggest that this increase will elevate the inflation rate to approximately 3% by December.
Disputing Administration Claims
The administration maintains that tariffs are not a burden on Americans. However, during an appearance on NBC’s “Meet the Press,” Treasury Secretary Scott Bessent dismissed Goldman’s findings regarding the burden on U.S. consumers. He claimed that tariffs are not taxes on Americans.
Business Leaders’ Perspectives
Business leaders have voiced concerns over the tariffs’ effects on consumer prices. For instance, Walmart CEO Doug McMillon stated that although the company can absorb some tariff costs, higher prices for customers are inevitable.
Recent Developments in Tariffs
As the Trump administration continues to impose additional tariffs on imported goods, consumers are expected to face even greater pricing pressures. Recent tariffs have affected products such as lumber, furniture, and kitchen cabinets, which went into effect recently. The administration has justified these tariffs under the guise of national security, although some experts criticize this rationale as unfounded.
- Tariff Summary:
- U.S. consumers bear 55% of costs
- U.S. businesses shoulder 22%
- Foreign exporters cover 18%
- Inflation Projections:
- Current rise in core prices: 0.44%
- Expected inflation rate by December: 3%
The findings from Goldman Sachs illustrate a growing concern regarding the implications of President Trump’s tariffs on U.S. consumers. As prices rise, the debate around the true impact of these policies continues.
