Donald Trump is targeting other countries with this weapon, but as experts from the Goldman Sachs investment bank point out in the latest analysis, Americans will suffer greatly from it. “Goldman Sachs predicts that American consumers will pay more than half of the costs of the tariffs imposed by the US president” writes Bloomberg.
Donald Trump's tariffs. Americans will cover most of the costs
“American consumers will likely pay 55% of the tariff costs by the end of the year, and American companies 22%. Foreign exporters will cover 18%. customs duties by lowering the prices of goods“ – wrote Goldman Sachs analysts in the cited report.
Why is this happening? Raising prices takes time. Experts note that US tariffs have raised the prices of basic consumer goods and services by 0.44% so far this year. and will increase the closely watched inflation rate to 3%. until December.
“Donald Trump has turned global trade upside downintroducing a series of tariffs and trade restrictions as part of a mission to reduce trade differences with other countries and encourage manufacturing in the United States. While the president and his officials say trading partners bear the costs of tariffs, U.S. importers pay fees imposed by Customs and Border Protection, and consumers pay higher prices when companies pass the costs on to them. Foreign companies absorb tariffs, lowering prices to maintain market share,” Bloomberg summarizes the situation.
Donald Trump attacks critics
The agency reminds that Donald Trump previously attacked Goldman Sachs and its CEO David Solomon for similar critical comments about tariffs. “They mispredicted both the market reaction and the tariffs themselves a long time ago, and they were wrong, as they are wrong on so many other issues,” the president wrote on his social media profile in August.
