Six months after US President Donald Trump’s new tariff policy, a report by Goldman Sachs claims that American consumers are now paying up to 55% of the import duty (tariff) price and this figure could soon reach 70%. Goldman Sachs estimates that American consumers are paying more than half of Trump’s tariffs. That means, the situation with Americans is like income is one rupee and expenditure is one rupee.
The Trump administration had implemented these tariffs to hurt China economically, but according to the report, its direct impact is now falling on the pockets of American consumers. Since Trump’s “Liberation Day” speech in April, prices of everything from furniture to food items have increased continuously.
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Goldman Sachs says that if Trump also implements his new tariff threats, inflation will increase again and the problems of the common people will increase further. Reports show that so far the Trump administration has imposed heavy tariffs on copper, steel, aluminum, and auto parts. A duty of up to 28% has been imposed on China and up to 16% on other countries.
Consumer price index increasing since April
According to the US Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) has been continuously increasing since April and it reached 2.93% in August. At the same time, a different criterion used by the Federal Reserve has also reached above the target of 2%, i.e. 2.7%.
Trump administration may focus on nutrition assistance programs
The report also says that even though the Trump administration is promising to reduce inflation, there is currently no sign of a decline in prices. Meanwhile, the White House plans to direct some of the billions of dollars raised from tariffs to nutrition assistance programs that have been hit by the government shutdown.
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