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Goldman Sachs: US Consumers May Bear 67% of Tariff Costs
Summary: According to data from FXStreet, Goldman Sachs research shows that US businesses have borne most of the costs of Trump's tariffs so far, but the burden will increasingly shift to consumers. Analysts at Goldman Sachs, including Jan Hatzius, wrote in a report that as of June, US consumers have borne about 22% of the tariff ...
According to data from FXStreet, Goldman Sachs research shows that US businesses have borne most of the costs of Trump's tariffs so far, but the burden will increasingly shift to consumers. Analysts at Goldman Sachs, including Jan Hatzius, wrote in a report that as of June, US consumers have borne about 22% of the tariff costs, but if recent tariffs follow previous tax patterns, their share will rise to 67%. Up to now, US businesses have borne about 64% of the tariff costs, but their share will drop to below 10% in the future. As of June, foreign exporters have borne about 14% of the tariff costs, and their share may rise to 25% in the future. Overall, US inflation is expected to rise for the remainder of the year. Goldman Sachs predicts that based on a hypothetical potential inflation rate of 2.4% excluding tariff impacts, the year-on-year growth rate of core personal consumption expenditures (PCE) in December will reach 3.2%.
