US consumers to bear brunt of tariff hit, Goldman economists say

By Matthew Thomas | Bloomberg

The impact of President Donald Trump’s tariffs on consumer prices is just getting started, according to research by Goldman Sachs Group, adding more uncertainty to a Treasury market that has been gripped by shifting bets on the pace of interest rate cuts.

US companies have so far taken the bulk of the hit from Trump’s tariffs but the burden will increasingly be passed on to consumers as companies hike prices, economists including Jan Hatzius wrote in a note. Consumers in the US have absorbed an estimated 22% of tariff costs through June, but their share will rise to 67% if the latest tariffs follow the pattern of levies in previous years, they wrote.

The net result: faster inflation. The core personal consumer expenditure index, one of the Federal Reserve’