- cross-posted to:
- news@lemmy.world
- cross-posted to:
- news@lemmy.world
The findings suggest U.S. consumers will continue to struggle with high prices — something Trump had promised to address in the run-up to his re-election.
Six months into Donald Trump’s unprecedented gambit to impose sizable tariffs on imports, U.S. consumers are already shouldering as much as 55% of their costs, according to a new report from Goldman Sachs analysts.
And with new tariffs likely on the way, the cost burden could rise even higher, they said.
The findings, released Sunday, suggest U.S. consumers will continue to struggle with high prices — something Trump had promised to address in the run-up to his re-election. While inflation rates have come down from the post-Covid peak, they have remained stuck above levels economists consider healthy, causing consumers and businesses alike to continue to report feeling burdened by price increases.
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Who else would be bearing the costs? The government is profiting from them, foreign companies and individuals aren’t affected beyond a drop in purchasing power, and companies are just going to pass the costs on to the consumer.
foreign companies and individuals aren’t affected beyond a drop in purchasing power
Actually they are affected. Either their profit margins drop, or they drop trade with the USA completely.
But any of this still affects American consumers.
I have no doubt that Goldman Sachs have their numbers right, but not the implications and knock-on effects etc.
Their percent margin might drop, but there is no way they just eat say a 100 dollar extra tariff charge. They would charge 100 dollars more on the item(s). They make the same profit, consumer pays more. The only time this isn’t true, is if the consumer will not or cannot pay the extra 100 dollars for the product and the sale is lost. In such a case they may try to pay part of the tariff and not raise their costs to account for margin.
In practice I think many companies will actually charge more than the tariff to maintain percent margin.
So definitely affects US consumers and companies, but may not affect foreign companies really at all.
And 6 months from now, it will be the full cost. They’re just turning up the heat slowly enough that the frogs don’t notice the difference.
Tell your employers and demand a raise to compensate. Pass the buck until someone in the finance sector gives a shit.
The employers are hoping to replace nearly everyone but those in the C suite with AI.
Ironically, only the C suite could be replaced with AI.
100% this. They are usually so formulaic and have such little creativity, that I really think boards should have started there, rather than with other jobs. The problem is that C suite types sit on each others’ boards…
“Hey boss, can I have more money?”
“No”
“Okay, bye”
Is the GOP play here to just keep manipulating the stock market with tariffs then remove them when the campaigns are in swing so they can say “look how we fixed the economy!!1!”
Which their base may or may not eat up depending on how bad their attention span are.
The other option is they have no plan and their just gonna keep grifting.
See? Americans actually do love high taxes and big government! Maybe Bernie should start talking about how Mexico’s gonna pay for universal healthcare! (And then just raise taxes)
Who does Goldman Sachs think is bearing the rest?
Obelix.
I’m so broke rn that I’m rehoming most of my ducks. I’m only keeping 3 of the 8 that I have. I’ll save like $60/month on feed with a smaller flock. That money won’t go towards my savings, but to my mortgage payment which will go up by $40 starting in December.
Shit even your mortgages have import tariffs
Yep.
Fr tho, I think the issue is that my town is changing a lot of stuff and I think zoning is changing which is making property taxes go up. I’m pissed to say the least
Only 55%?
The large retailers were trying to hide the price increases initially.
Whoa, are you saying not all companies were total loyalists to Taco and didn’t just eat the cost of his egotistical fantasies?
Only? I would have expected them to take all, and a bit. Never let an opportunity to make some extra profit go to waste…
What childhood enemy of Trump’s is making kitchen cabinets and is now being punished?
The “National Security” implications of cabinetry are beyond me.
It’s almost like Americans should have listened to every fucking economist in the country.
But Americans are stupid, so here we are.
Not this Guy.
