Goldman Sachs: The impact of tariffs will gradually be passed on to consumers

Goldman Sachs analysts said that the burden of tariffs imposed by US President Donald Trump will gradually be passed on to consumers. Although businesses bear about 64% of the costs, this percentage is expected to fall to less than 10% if the Trump administration’s trade policies continue.

The bank explained that US consumers bore 22% of the costs of tariffs as of June, but this percentage will rise to 67% if the recently imposed tariffs follow the pattern of previous tariffs.

In a post on the Truth Social platform, Trump criticized the bank’s executive, downplaying the potential impact of these tariffs on the economy, noting that these costs are borne by foreign companies and governments.

On August 7, Trump’s tariffs on more than 90 countries took effect. Trump hopes this move will boost American manufacturing, protect jobs, and reshape the global trading system. Trump had previously imposed 50% tariffs on India unless it stopped purchasing Russian oil by August 27.

The tariffs, which ranged from 10% to 50%, affected a wide range of countries, most notably Brazil (50%), Syria (41%), Switzerland (40%), Canada (35%), China (30%), and South Africa (30%).

Negotiations between the United States and China are still ongoing regarding extending the trade agreement reached last May, which expires on August 12. Under the agreement, US tariffs on Chinese goods were reduced to 30%.