A new Goldman Sachs analysis reveals U.S. consumers are shouldering 55% of the costs from tariffs imposed this year, with inflation projected to rise to 3% by December. The report, released Sunday, highlights how households and businesses are navigating shifting trade policies amid ongoing legal challenges.
Key findings include:
22% of tariff costs absorbed by U.S. businesses
18% borne by foreign exporters
5% evaded through supply chain adjustments
Economists note companies are delaying price hikes while assessing the tariffs' longevity, creating short-term pressure on profit margins. The levies have already increased core personal consumption expenditure prices by 0.44% in 2023.
For Asian markets, the findings underscore the complex ripple effects of U.S. trade decisions. While Chinese mainland exporters face direct impacts, regional supply chains from Vietnam to South Korea continue adapting through production diversification and price negotiations.
Business analysts warn prolonged tariffs could accelerate manufacturing shifts across Southeast Asia, particularly in electronics and automotive sectors. The report comes as APEC members prepare for November's Leaders' Meeting, where trade stability is expected to dominate discussions.
