Trump tariffs weigh in the pocket of US consumer

Although Donald Trump insists that commercial tariffs are not paid by US consumers, but by foreign countries and their companies, the latest data show an opposite scenario. It is the public in the United States that bears most costs.

Studies show that import prices in the United States have remained stable since the election, with only 0.5%. This indicates that foreign suppliers have not reduced their prices to compensate for additional taxes, which belies the narrative that they would be responsible for absorbing the charges imposed by the US government.

According to Fitch Ratings, charges fall directly on importers in the US, who need to decide whether they can withstand part of this expense or will pass it on in full to the end consumer. By June, it was estimated that 22% of the weight of tariffs had already been transferred to Americans, but it is expected that by October this percentage will reach 67%.

Goldman Sachs economists project that up to 70% of direct costs are passed on to the consumer, and do not rule out that, with indirect effects – such as price increases by national producers that take advantage of tariff protection – the impact on consumer reaches 100% of the values.

The result is that, in practice, the tariff policy defended by Trump translates into increased cost of living for millions of American, reaching from food and clothing to electronics and school materials.