U.S. consumers will be responsible for more than half of the price increases caused by tariffs, according to a new study from Goldman Sachs.
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The firm estimated that by year-end, consumers will pay 55% of tariff costs, while companies will pay 22%. Furthermore, foreign exporters would absorb 18% of the costs by lowering goods prices, while the remaining 5% would likely be avoided.
Goldman Sees ‘Large Risks’ Ahead as Trump Threatens New Tariffs
As of now, “US businesses are likely bearing a larger share of the costs,” as immediately passing on higher prices to customers would risk hurting sales.
Notably, the estimates don’t factor in President Trump’s latest threat to raise tariffs on Chinese imports by an additional 100%.
“We are not assuming any changes to tariff rates on imports from China, but events in recent days suggest large risks,” said Goldman analysts.
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