A recent analysis by Goldman Sachs indicates that U.S. consumers will absorb 55% of the costs associated with President Trump’s tariffs this year. This finding has been echoed in several reports.
According to the study, U.S. companies and foreign exporters will bear 22% and 18% of the tariffs’ financial burden, respectively. The economists at Goldman Sachs mentioned that it is expected U.S. companies will eventually pass these costs on to consumers in the months ahead.
They noted that currently, U.S. companies are likely covering more of the costs since the tariffs have only recently been implemented. Adjusting prices for consumers and negotiating lower prices with suppliers can take time.
The Trump administration has instituted tariffs on various trading partners globally, affecting numerous products. While the president asserts that foreign countries will carry the costs, recent data from the Bureau of Labor Statistics showed a 2.9% rise in consumer prices from August 2024 to August 2025.
In an interview with NBC News, Treasury Secretary Scott Bessent claimed last month that these tariffs shouldn’t be viewed as a tax on American consumers.
In response to the analysis, White House Press Secretary Khush Desai stated, “While Americans may navigate a temporary adjustment period due to tariffs aimed at changing the status quo, the ultimate financial burden will fall on foreign exporters.” Desai further claimed that companies are actively adapting their supply chains, including bringing production back to the U.S., and reassured that the administration will work to manage the economic impacts of rising inflation while focusing on long-term recovery.
Recently, Trump threatened to increase taxes on imports from China following a mandate requiring foreign firms to use more than 0.1% rare earth materials sourced from China. These rare earth metals are essential for the production of items like semiconductors and laptops.
Also, the Supreme Court is set to hear appeals in November concerning whether President Trump can broadly impose tariffs under the International Emergency Economic Powers Act (IEEPA), which was enacted in 1977 to give the president authority to manage economic transactions in times of national emergency.
