- Goldman Sachs estimates U.S. consumers now shoulder two-thirds of President Trump’s new tariff costs, with more companies planning to pass them on in the future and foreign exporters refuse to “eat” the price hikes. The bank expects the measures to lift core PCE inflation to 3.2% by year-end, adding pressure to the Fed’s 2% target.
When President Trump announced his tariff agenda, he said it would be foreign companies and consumers that would “eat” the price hikes. That’s a take which may be proved optimistic at best, and misguided at worst.
While tariffs have yet to significantly shift the dial on inflation—prompting individuals like Treasury Secretary Scott Bessent to label them the “dog that didn’t bark”—analysts are widely expecting the hikes to ultimately be paid for by the U.S.
So far the sharpest end of the tariff regime has yet to be felt. President Trump delayed his ‘Liberation Day’ tariffs by three months in order to agree deals with trading partners.
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