Goldman Sachs: U.S. Consumers May Bear 67% of Tariff Costs

According to a report by Jinse Finance, Goldman Sachs research indicates that, so far, U.S. companies have borne the majority of the costs from Trump-era tariffs, but this burden is increasingly shifting to consumers. Goldman Sachs analysts, including Jan Hatzius, wrote in a report that as of June, U.S. consumers had shouldered about 22% of the tariff costs, but if recent tariffs follow previous patterns, their share will rise to 67%. To date, U.S. companies have borne about 64% of the tariff costs, but their share is expected to fall below 10% in the future. As of June, foreign exporters had taken on about 14% of the tariff costs, and their share may rise to 25% going forward. In summary, U.S. inflation is expected to rise for the remainder of this year. Goldman Sachs forecasts that, assuming an underlying inflation rate of 2.4% excluding tariff effects, the year-on-year growth rate of core Personal Consumption Expenditures (PCE) in December will reach 3.2%. (Jin10)