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Since President Donald Trump's announcement in April about new tariffs he would impose on the U.S.'s trading partners, Americans may have wondered whether there's been an impact on what they're paying for products and services.

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Trump has imposed varying tariffs on specific countries, as well as tariffs on copper, steel, aluminum, lumber as well as some automobiles and auto parts.

Now, a Goldman Sachs analysis has revealed a shocking number: American consumers will shoulder as much as 55% of the cost of Trump's tariffs by the end of the year, according to the report cited by The Hill. [1]

“At the moment, however, U.S. businesses are likely bearing a larger share of the costs because some tariffs have just gone into effect and it takes time to raise prices on consumers and negotiate lower import prices with foreign suppliers,” said the analysts, who believe American businesses and foreign exporters will take on 22% and 18% of the costs, respectively.

Last month, The Budget Lab at Yale said tariffs have raised prices by 1.3% in the short-run, translating to a loss in purchasing power of $1,800 for the average household and $1,000 for households at the bottom of the income distribution. [2]

How has Trump responded to claims that tariffs are actually making prices higher?

NBC News noted that the consumer price index has notched gains every month since the April announcement (September data is delayed due to the government shutdown). The inflation measure preferred by the Federal Reserve, the personal consumption expenditure price index (PCEPI), has also climbed since April. [3]

According to the White House,“While Americans may face a transition period from tariffs upending a broken status quo that has put America Last, the cost of tariffs will ultimately be borne by foreign exporters.”

The administration has also pointed to the revenues tariffs have brought, which has reached about $215 billion so far this year. Trump has suggested he may use the funds to pay down the national debt, provide relief to farmers and the manufacturing industry, and send rebate checks to U.S. households.

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How can consumers manage higher prices?

According to The Budget Lab's analysis,“Consumers face particularly high increases in leather and clothing in the short run: prices increase 24% for leather products (shoes and hand bags) and general apparel, and 15% for textiles."

Shoppers looking to avoid higher prices on clothing could turn to thrifting or consignment shops to avoid climbing prices for their family's clothing needs.

Other affected consumer products include electoral equipment and consumer electronics, which face a 16-18% short-run price effect. Food prices rise 1.9% in the short run and stay 1.6% higher in the long run.

Tariffs on kitchen cabinets and vanities, and upholstered wooden furniture are also scheduled to rise from 25% to 50% and 30%, respectively, in January. This could signal that shoppers might consider looking for deals now, ahead of possible price hikes.

An August BBC report says that, along with clothing and footwear, other items that may become more expensive for Americans are: coffee, olive oil and other foods; beer, wine and spirits; cars; houses; and energy and fuel. [4]

For shoppers who have seen their grocery bills increase, it may mean spending more time hunting for deals. To save money at the checkout, start at home: be sure to check your pantry while you are making your grocery list, and buy groceries based on meal plans. This can help reduce food waste and avoid last-minute takeout options, which are pricier.

Comparison shopping may become more of a necessity if food prices climb. Buying on sale, using coupon apps, and buying in bulk and freezing can all help reduce grocery costs.

You may need to adjust your budget to account for rising prices due to tariffs. Keep track of your spending in different categories to see where price increases may be hitting your pocketbook.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Hill (1 ); The Budget Lab (2 ); NBC News (3 ); BBC (4 )

This article originally appeared on Moneywise under the title: American consumers will shoulder 55% of the cost of Trump's tariffs - here's how to update your shopping habits

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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