Here's a Goldman Sachs analysis of who is carrying the cost of tariffs:
Goldman Sachs economists estimated that as of August, U.S. businesses were absorbing a net 51% of tariff costs, while American consumers were shouldering 37% of the burden. They also estimated that 9% of the cost was paid by foreign exporters, and about 3% was attributed to potential tariff evasion.
"Our analysis suggests that at the moment, U.S. businesses are bearing the largest share of the tariff costs because some tariffs have only recently gone into effect and it takes time to raise prices on consumers and negotiate lower import prices with foreign suppliers," the Goldman economists wrote.
The report went on to note that if the newly implemented and future tariffs end up having the same price impact as those that have taken effect so far, then American consumers will eventually be absorbing the majority of costs.
Interesting analysis.
Goldman Sachs economists estimated that as of August, U.S. businesses were absorbing a net 51% of tariff costs, while American consumers were shouldering 37% of the burden. They also estimated that 9% of the cost was paid by foreign exporters, and about 3% was attributed to potential tariff evasion.
"Our analysis suggests that at the moment, U.S. businesses are bearing the largest share of the tariff costs because some tariffs have only recently gone into effect and it takes time to raise prices on consumers and negotiate lower import prices with foreign suppliers," the Goldman economists wrote.
The report went on to note that if the newly implemented and future tariffs end up having the same price impact as those that have taken effect so far, then American consumers will eventually be absorbing the majority of costs.
Interesting analysis.
