President Trump’s tariff strategy faces scrutiny as Goldman Sachs reveals American consumers are bearing 55% of the cost burden, challenging promises to make foreign exporters pay while families struggle with persistent inflation.
Story Overview
- U.S. consumers shouldering 55% of tariff costs, potentially rising to 70% with expanded duties.
- Consumer Price Index climbed to 2.93% by August, with prices rising monthly since April.
- Trump imposed tariffs of up to 28% on China and 16% globally on steel, aluminum, and auto parts.
- White House maintains foreign exporters will ultimately bear costs as supply chains shift.
Tariff Impact on American Households
Goldman Sachs analysts determined that American consumers are absorbing 55% of tariff costs imposed over the past six months, contradicting administration promises that foreign exporters would bear the burden.
The analysis compared consumer price increases for tariffed products against historical trends, revealing significant pass-through costs to families already struggling with inflation.
This burden represents an improvement from Trump’s first-term trade war in 2018, when consumers shouldered nearly the entire cost of tariffs without foreign exporters absorbing any meaningful share.
U.S. consumers are already shouldering as much as 55% of costs due to Trump’s unprecedented gambit to impose sizable tariffs on imports, according to a new report from Goldman Sachs analysts. https://t.co/GO3rbr8I5L
— NBC News (@NBCNews) October 13, 2025
Rising Inflation Despite Presidential Promises
Consumer prices have increased every month since Trump’s April “Liberation Day” speech announcing new tariffs, pushing the Consumer Price Index to 2.93% by August. The Federal Reserve’s preferred inflation measure reached 2.7%, exceeding the central bank’s 2% target and maintaining pressure on American families.
These persistent price increases challenge Trump’s campaign promise to address high costs, as inflation remains stuck above economists’ healthy levels despite falling from post-COVID peaks.
Comprehensive Tariff Structure Takes Shape
Trump has implemented substantial tariffs across multiple sectors, including copper, steel, aluminum, automobiles, and auto parts, with country-specific rates reaching 28% on Chinese goods and 16% on other nations, according to Yale Budget Lab data.
The administration threatens additional tariffs on furniture and kitchen cabinets that could push the consumer burden to 70% of costs. Recent threats to double China tariffs, announced on October 10th, prompted administration officials to reassure markets about avoiding renewed trade tensions with America’s largest trading partner.
Administration Defends Long-Term Economic Strategy
White House spokesman Kush Desai acknowledged Americans face a “transition period” while defending tariffs as necessary to overturn policies that “put America Last.” The administration maintains that foreign exporters will ultimately bear costs as companies shift supply chains and bring production back to the United States.
Officials emphasize that current pain represents a temporary disruption needed to provide long-term economic relief from what they characterize as “Joe Biden’s inflation crisis” while restoring American manufacturing dominance.
Market Uncertainty and Future Implications
American businesses may be delaying full price increases while awaiting the Supreme Court’s November 5th ruling on tariff legality, according to Goldman analysts. Companies likely accumulated inventory before tariff implementation, temporarily cushioning retail price impacts for consumers.
However, analysts estimate tariffs have already added 0.44% to the Fed’s preferred inflation measure, with potential increases to 0.6% if threatened furniture and cabinet duties proceed, creating significant risks for economic stability and consumer purchasing power.
