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Goldman Sachs Report Blows Up Trump’s Key Tariff Claim

The administration has claimed foreign countries would one the ones paying for the president’s sweeping tariffs.

U.S. consumers are bearing the brunt of President Donald Trump’s tariff policy, according to a new report from Goldman Sachs. Despite the president and his team repeatedly arguing that America’s trading partners would be the ones paying for the duties, consumers are shouldering as much as 55 percent of their costs, the report found. Over the past six months, Trump has imposed double-digit tariffs on products from dozens of countries as a way to force America’s trading partners to negotiate new trade deals. The president has also levied additional duties on sector-specific imports, promising that those tariffs—an import tax paid by American companies, with the costs typically passed on to consumers—would lead to a boom in domestic manufacturing. Consumer prices have increased every month since April, when Trump announced the first wave of tariffs. With new tariffs on the way, the costs could rise even higher, according to Goldman Sachs. Some businesses could also be relying on pre-tariff inventory to keep costs lower for now, or even temporarily shielding consumers from the worst of the price hikes while waiting to see how the Supreme Court will rule on the issue.