Trade tensions are more than a headline; they're hitting wallets across America. A new report from Goldman Sachs reveals that, by year-end, U.S. consumers will absorb 55 percent of the costs from tariffs imposed under President Trump's administration. U.S. businesses will cover 22 percent, foreign exporters 18 percent, and 5 percent will slip through the cracks.
Right now, companies are biting the bullet. Since many tariffs only recently took effect, businesses are temporarily shouldering a larger share of costs. It takes time to adjust price tags, renegotiate with suppliers, or pass along higher import fees to shoppers.
The data shows a real impact on inflation: tariffs have already pushed core personal consumption expenditure prices up by 0.44 percent this year. If trends hold, those levies could lift the closely watched inflation gauge to around 3 percent by December, levels we haven't seen in years.
For savvy consumers and entrepreneurs tracking global markets, this means keeping an eye on price tags and import flows. Will companies hold off on rate hikes amid legal challenges, or will the full cost shift to shoppers? The answers will shape budgets, investment plans, and even travel itineraries as the holiday season approaches.
Data Spotlight: 55% consumers | 22% U.S. businesses | 18% foreign exporters | 5% evaded
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Report finds U.S. consumers to bear more than half of tariff costs
cgtn.com
