US Companies, Consumers Are Paying for Trump's Tariffs, Not Foreign Firms [View all]

"Who’s paying for Donald Trump’s tariffs? So far, American businesses and consumers.

General Motors Co. was the latest US company to disclose how the levies are raising costs, with the automaker saying Tuesday that the duties dented profits by more than $1 billion as it chose to absorb the blow. That helps explain why car prices didn’t rise in last week’s inflation data, while robust price increases for other commonly imported goods like toys and appliances showed those tariff expenses are being passed on to consumers.

Meanwhile, import prices excluding fuel were up notably in June, suggesting foreign companies aren’t shouldering the burden by offering US firms lower prices — challenging the president’s claims that other countries pay the rate. Trump reiterated that characterization on Tuesday after a meeting with his counterpart in the Philippines, saying that country “will pay a 19% Tariff” in a post on social media.

While customs duties are giving a significant boost to US revenues, the data show that those coffers are being filled domestically.

“The top-down macro evidence seems clear: Americans are mostly paying for the tariffs,” George Saravelos, global head of FX research at Deutsche Bank AG, said in a note Tuesday. “There is likely more pressure on US consumer prices in the pipeline.”


https://www.bloomberg.com/news/articles/2025-07-22/us-companies-and-consumers-are-paying-for-trump-s-tariffs?srnd=homepage-americas