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Consumers Hit Hard: 55% of Tariff Costs Projected

10/13/2025

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Summary

Story summary

Goldman Sachs analysts say U.S. consumers will bear 55% of tariffs' costs this year, while businesses absorb 22% and foreign exporters 18%.
The analysis projects inflation at 3% by December due to the tariffs.
The data contradicts President Donald Trump's claim that foreign nations would pay the tariffs, showing American consumers face higher prices.
The Supreme Court will hear cases on the legality of these tariffs on November 5.

History

Historical Context

The Smoot-Hawley Tariff Act, enacted on June 17, 1930, raised U.S. tariffs on over 20,000 imported goods, aiming to protect American industries during the Great Depression. However, it provoked retaliatory tariffs from other nations, leading to a 67% decline in U.S. exports by 1933. This protectionist policy is often cited as exacerbating the economic downturn and hindering global trade recovery.

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Story summary

Goldman Sachs analysts say U.S. consumers will bear 55% of tariffs' costs this year, while businesses absorb 22% and foreign exporters 18%.
The analysis projects inflation at 3% by December due to the tariffs.
The data contradicts President Donald Trump's claim that foreign nations would pay the tariffs, showing American consumers face higher prices.
The Supreme Court will hear cases on the legality of these tariffs on November 5.

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