Americans Are Bearing the Brunt of Trump’s Tariffs, Goldman Sachs Warns
October 14, 2025
American consumers are footing most of the bill for former President Donald Trump’s tariffs, according to a new economic analysis from Goldman Sachs — and the cost burden may only get heavier.
The investment bank’s latest research, released Monday, estimates that 55% of the costs from ongoing tariffs will be borne by U.S. consumers in 2025, undermining a long-standing narrative from Trump and his allies that foreign exporters are picking up the tab. The report adds that 22% of the cost falls on American businesses, while only 18% is absorbed by foreign sellers.
The findings challenge key claims made by the Trump administration during his presidency, where tariffs on Chinese goods were repeatedly touted as a strategy to force concessions from Beijing without hurting Americans. But as the Goldman economists warn, the burden of those policies continues to fall squarely on American wallets — from groceries and furniture to clothes and car parts.
Prices Rising Across Tariff-Hit Sectors
Evidence of this cost pass-through is already showing up in official inflation data. The Bureau of Labor Statistics’ recent Consumer Price Index (CPI) report noted noticeable price increases in several sectors directly impacted by tariffs. That includes everyday consumer goods like apparel, home furnishings, and auto components — areas particularly sensitive to import taxes.
“U.S. businesses are likely bearing a larger share of the costs at the moment,” Goldman Sachs said in its research note, explaining that companies often delay passing new costs to customers until pricing structures and supplier negotiations catch up.
But that dynamic could soon shift. As businesses complete contract renewals and update supply chains, the financial weight will likely move toward consumers — potentially raising prices further in an already inflation-prone environment.
Trade Tensions Escalate Again
The warning comes amid renewed volatility in U.S.-China trade relations. Just days ago, Trump threatened to slap a 100% tariff on unspecified Chinese imports, a dramatic escalation that sent shockwaves through financial markets.
Although Trump appeared to soften his tone two days later, the damage was done. Wall Street saw a brief but sharp sell-off, as investors feared new trade restrictions could disrupt global commerce at a time when economic uncertainty remains high.
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment,” Trump posted on social media. “He doesn’t want Depression for his country, and neither do I.”
Still, the threat of future tariffs — and their long-term effects on U.S. consumers — continues to loom large.
Goldman: Tariffs Are a Tax on Americans
Goldman Sachs’ analysis adds to a growing body of evidence from independent economists, trade analysts, and even former White House officials who argue that tariffs function as a tax on American households, rather than a penalty on foreign competitors.
This reality is politically significant, especially as Trump remains a powerful figure in Republican politics and a leading candidate in the 2024 presidential race. The issue of trade — once a unifying theme for his base — may now be more divisive, as voters weigh the impact of those policies on their day-to-day expenses.
And with new tariffs potentially on the horizon, the debate over who pays — and how much — is far from over.
