💸 Think of it like splitting a pizza bill: You don't always pay equal slices. A fresh Goldman Sachs report finds that U.S. consumers will end up munching on 55% of the tab for Trump's tariffs this year.
Who else picks up the tab? U.S. businesses chip in 22%, foreign exporters cover 18%, and 5% sneaks through evasion. 🕵️♂️
Since some tariffs only just kicked in, businesses haven’t fully passed costs to shoppers. Analysts say companies are holding off on price hikes to see if the duties stick amid ongoing legal battles.
So far, levies have nudged core personal consumption expenditures up by 0.44%. If the trend continues, this could push headline inflation toward 3% by December. 🔥📈
'At the moment, however, U.S. businesses are likely bearing a larger share of the costs because some tariffs have just gone into effect and it takes time to raise prices on consumers and negotiate lower import prices with foreign suppliers,' the report notes.
Bottom line: Keep an eye on your grocery bill—trade wars can hit your wallet faster than you think. 💸
Reference(s):
Report finds U.S. consumers to bear more than half of tariff costs
cgtn.com
