Analysis-How the United States is eating Trump's tariffs

[Yo_Mama_Been_Loggin]

FRANKFURT/WASHINGTON (Reuters) -U.S. companies and consumers are bearing the brunt of the country's new import tariffs, early indications show, contradicting assertions by President Donald Trump and complicating the Federal Reserve's fight against inflation.

Trump famously predicted that foreign countries would pay the price of his protectionist policies, wagering that exporters would absorb that cost just to keep a foothold in the world's largest consumer market.

But academic studies, surveys and comments from businesses show that through the first months of Trump's new trade regime it is U.S. companies that are footing the bill and passing on some of it to the consumer - with more price hikes likely.

"Most of the cost seems to be borne by U.S. firms," Harvard University professor Alberto Cavallo said in an interview to discuss his findings. "We have seen a gradual pass-through to consumer prices and there's a clear upward pressure."

https://finance.yahoo.com/news/analysis-united-states-eating-trumps-050137442.html

[LymphocyteLover]

1. As everyone with a brain predicted!!! JFC!

[LetMyPeopleVote]

2. U.S. consumers bearing more than half the cost of tariffs so far, Goldman Sachs says

The findings suggest U.S. consumers will continue to struggle with high prices — something Trump had promised to address in the run-up to his re-election.

U.S. consumers are already shouldering as much as 55% of costs due to Trump’s unprecedented gambit to impose sizable tariffs on imports, according to a new report from Goldman Sachs analysts.

— NBC News (@nbcnews.com) 2025-10-13T15:32:05Z

https://www.nbcnews.com/business/consumer/us-consumers-bearing-half-cost-tariffs-far-goldman-sachs-says-rcna237283

Six months into President Donald Trump’s unprecedented gambit to impose sizable tariffs on imports, U.S. consumers are already shouldering as much as 55% of their costs, according to a new report from Goldman Sachs analysts.

And with new tariffs likely on the way, the cost burden could rise even higher, they said.

The findings, released Sunday, suggest U.S. consumers will continue to struggle with high prices — something Trump had promised to address in the run-up to his re-election. While inflation rates have come down from the post-Covid peak, they have remained stuck above levels economists consider healthy, causing consumers and businesses alike to continue to report feeling burdened by price increases.

Over the past six months, Trump has imposed tariffs on copper, steel, aluminum, and some automobiles and auto parts. He has also levied country-specific tariff rates of as much as 28% on China and 16% on much of the rest of the world, according to the Yale Budget Lab.

Partially as a result, consumer prices tracked by the Bureau of Labor Statistics have increased every month since April, when Trump made his “Liberation Day” speech announcing the new duties. As of August, the BLS’ benchmark Consumer Price Index (CPI) stood at 2.93%. September CPI data has been delayed due to the government shutdown, now in its 13th day, and is now slated to be released later this month.

[LetMyPeopleVote]

3. Goldman Sachs exposes trump's huge lie that foreign countries are paying his tariffs and not US consumers

It is US consumers who are paying tariffs.

Link to tweet

Goldman Sachs kicks Donald Trump hard in the teeth with a new report that exposes his huge lie that foreign countries are paying his tariffs — when reality it's American consumers......

According to the bombshell analysis, U.S. consumers are already paying 55% of the tariff costs just six months into their implementation. Trump and his minions have repeatedly claimed, despite pushback from economic experts, that other countries would simply "eat" the tariffs. We now see beyond a shadow of a doubt that that is not the case.

Since April when Trump first announced his harebrained tariffs, consumer prices have steadily increased every month, eating into the wages and savings of American workers via inflation. As if that weren't bad enough, some companies may have been using pre-tariff inventories to keep prices artificially low. As those stockpiles run out, they'll be forced to raise prices to offset the tariffs.

Goldman Sachs also predicted that costs will likely rise even higher now that Trump is considering another wave of disastrous tariffs. True to ignorant form, he refuses to look at the effects of his policies or to reconsider his prior economic assumptions. There is no scenario in which this man admits that he was wrong.

The analysis estimates that the Trump tariffs have added a whopping 0.44% to the Fed's preferred inflation measure, a staggering increase when considered in the total scope of the U.S. economy. Hard working Americans are getting hammered. If Trump follows through on threats to tariff furniture and kitchen products, that number could rise to 0.6%. If that happens, consumers will bear 70% of the tariffs' cost.