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Tariff Costs Shift: Consumers Set to Bear 55% by 2025

10/22/2025

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Summary

Story summary

A Goldman Sachs analysis shows U.S. businesses bear 51% and consumers 37% of tariff costs, with consumers expected to cover 55% by end of 2025.
Tariffs have raised inflation by about 0.5 percentage point this year, and core PCE could reach 3% year over year by December 2025.
Federal Reserve policymakers noted inflation rose, with PCE at 2.7% and core PCE at 2.9% in August, prompting caution about rate cuts.

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Story summary

A Goldman Sachs analysis shows U.S. businesses bear 51% and consumers 37% of tariff costs, with consumers expected to cover 55% by end of 2025.
Tariffs have raised inflation by about 0.5 percentage point this year, and core PCE could reach 3% year over year by December 2025.
Federal Reserve policymakers noted inflation rose, with PCE at 2.7% and core PCE at 2.9% in August, prompting caution about rate cuts.