U.S. consumers will bear 67% of tariff costs

U.S. consumers and businesses are facing a new round of pressure from tariff policies. According to reports, as of June, U.S. businesses had absorbed over 50% of tariff costs. However, as businesses raise prices, the burden will increasingly shift to consumers, with the proportion of tariff costs borne by consumers expected to rise to 67%. Meanwhile, as the primary creators of most new jobs in recent years, U.S. small businesses are struggling to cope with the new tariff policies. The U.S. Chamber of Commerce, the largest business lobbying group in the U.S., estimated this month that approximately 236,000 small business importers faced an annual tariff impact of $202 billion before the latest tariff policies took effect on August 7. Goldman Sachs noted that the impact of tariff policies on prices has added further uncertainty to markets already roiled by the constantly changing expectations regarding the pace of interest rate cuts.