📢 Heads up: US President Trump’s new tariffs on furniture and lumber just took effect, and American consumers are picking up the tab—big time! 💸
According to a fresh analysis from Goldman Sachs, shoppers in the US will cover around 55% of the tariff costs by year-end. That share could climb to 70% by the end of next year. 😲
Here’s how the bill breaks down:
- Consumers: ~55%
- US businesses: ~22%
- Foreign exporters: ~18%
- Evaded tariffs: ~5%
Harvard’s Prof. Alberto Cavallo explains that we’ve already seen a steady pass-through to shelf prices—think extra for lumber and new living room setups—and core PCE inflation (a key price gauge) has ticked up by 0.2% so far. 📈
Cavallo and team tracked prices for over 350K items, from carpets to coffee. Since early March, imported goods are ~4% pricier, while homegrown products rose ~2%. And yes, that means your morning coffee—whether a masala chai or kopi luwak—might be nudged up too! ☕
Interestingly, sellers have soaked up some tariff pain, so price hikes are generally smaller than the official tariff rates. Meanwhile, foreign producers are also adjusting prices in dollars, partly due to currency shifts. 🌍💱
Bottom line? Trade tweaks at the top can echo down to our wallets and cups of joe. It’s a reminder that global policies shape everyday costs—from your IKEA shelves to that cafe latte. 💡
Reference(s):
U.S. consumers bearing brunt of Trump's new tariffs: analysis
cgtn.com
