Goldman Sachs reveals American consumers are bearing over half the cost of President Trump’s tariffs, contradicting administration promises that foreign exporters would shoulder the burden while families struggle with Biden-era inflation.
Story Highlights
- U.S. consumers shouldering 55% of tariff costs, potentially rising to 70%.
- Inflation has been climbing to 2.93% CPI since Trump’s “Liberation Day” tariff announcement.
- Supreme Court tariff case hearing scheduled for November 5th.
- Administration maintains that tariffs will ultimately shift costs to foreign exporters.
Goldman Sachs Analysis Reveals Consumer Burden
Goldman Sachs analysts released findings showing American consumers bear 55% of tariff costs six months into Trump’s trade policy implementation. The analysis examined consumer price deviations for tariffed products compared to previous trends.
This burden represents an improvement from Trump’s first-term trade war in 2018, when foreign exporters bore virtually no tariff costs. The current data suggests exporters and U.S. businesses share some burden alongside consumers, potentially preventing steeper retail price increases.
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. https://t.co/GO3rbr8I5L
— NBC News (@NBCNews) October 13, 2025
Inflation Pressures Mount Despite Administration Goals
Consumer prices have increased monthly since Trump’s April “Liberation Day” speech announcing new tariffs on copper, steel, aluminum, and automotive components.
The Bureau of Labor Statistics reports the Consumer Price Index reached 2.93% in August, while the Federal Reserve’s preferred inflation measure climbed to 2.7%, exceeding the central bank’s 2% target.
These increases compound existing price pressures from the Biden administration’s fiscal policies, creating ongoing financial strain for American families seeking economic relief.
White House Defends Tariff Strategy Amid Criticism
White House spokesman Kush Desai emphasized the administration’s position that tariff costs will eventually shift to foreign exporters as supply chains adapt. Desai characterized the current consumer burden as a “transition period” necessary to reverse policies that “put America Last.”
The administration points to companies already diversifying supply chains and onshoring production as evidence of long-term benefits. Trump previously criticized Goldman Sachs’ initial estimate, suggesting consumers could bear 67% of tariff costs, maintaining his position that foreign nations ultimately pay.
Supreme Court Case and Future Tariff Expansion
The Supreme Court will hear opening arguments on tariffs on November 5th, with businesses potentially delaying major price increases pending the decision.
Goldman analysts estimate tariffs have added 0.44% to the Fed’s preferred inflation measure, potentially rising to 0.6% if threatened furniture and kitchen cabinet tariffs take effect.
Trump’s October 10th threat to double tariffs on China could significantly increase the consumer burden to 70%. However, administration officials have sought to reassure markets about avoiding renewed trade tensions with America’s largest overseas trading partner.
