Who Pays for Trump's Tariffs? Goldman Sachs' Latest Analysis: U.S. Consumers to Bear Over 50% of the Cost

　　Economists said that because price increases take time, currently "U.S. firms are likely bearing a larger share of the costs."

　　"If the ultimate effect on prices of recently implemented and future tariffs is the same as for tariffs implemented earlier this year, then U.S. consumers would ultimately bear 55% of the cost of the tariffs."

　　They wrote that, so far this year, tariffs have increased the U.S. core personal consumption expenditures price index by 0.44%, and by December, the broad tariffs could push the inflation rate to 3%, well above the Federal Reserve's 2% target.

　　White House spokesman Kush Desai responded in a statement: "The President and the administration's position has always been clear: while Americans may face a transition period due to tariffs breaking the bad status quo that has put America at a disadvantage, the cost of the tariffs will ultimately be borne by foreign exporters."

　　"In response to the tariffs, businesses are already shifting and diversifying their supply chains, including moving production to the United States."

　　Although Trump and U.S. administration officials have consistently claimed that trading partners bear the cost of tariffs, U.S. importers are required to pay the tariffs enforced by Customs and Border Protection. When businesses pass on the costs, consumers face higher prices. Foreign firms may also absorb some of the tariffs by reducing prices to maintain market share.

　　It is worth noting that Goldman Sachs lowered its expectations regarding the impact of tariffs in its latest analysis. In August, the bank said that as of the end of June, U.S. consumers had borne about 22% of the tariff costs, but it expected this proportion to jump to 67%.

　　This August report from Goldman Sachs provoked fierce criticism from President Trump towards the bank and its CEO, David Solomon.

　　"They had the wrong call on the Market & Tariffs from day one, they were wrong, just like they were wrong on so many other things," Trump said at the time on his social media platform.