Recent U.S. tariffs have begun to increase costs for both consumers and businesses. Rising prices, especially for imported goods, are being described by economists as a “new wave fueling inflation.”
Companies passing on costs Research by economists at the St. Louis Fed found that between May and July, companies passed approximately 35% of the increased tariff costs on to consumers. This indicates that price increases are not limited to trade policies alone but are directly impacting household budgets.
Striking forecast from Goldman Sachs A similar analysis by Goldman Sachs predicts that this share could rise to 55% in the coming period. According to the report, companies will bear 22% of the costs, while foreign exporters will cover 18%. This scenario highlights the growing pressure tariffs are creating on global supply chains.
Max Dvorkin, one of the authors of the St. Louis Fed study, emphasized that price increases will continue even if tariffs remain unchanged. Dvorkin stated, “Even if tariffs remain stable, price dynamics will continue to challenge consumers in the coming months.”
