Posted: Monday, October 13, 2025. 10:37 am CST.
By Zoila Palma: Early data show that U.S. companies and consumers—not foreign exporters—are paying most of the cost of President Donald Trump’s new tariffs, Reuters report.
Economists and businesses report that American firms are footing the bill for higher import taxes and passing part of those costs to consumers, adding pressure to inflation already troubling the Federal Reserve.
Research led by Harvard University’s Alberto Cavallo found that imported goods have risen about 4% in price since Trump began imposing tariffs in March, while domestic goods increased by 2%.
The largest price jumps were seen in imports that the U.S. cannot easily replace, such as coffee, or in items from countries facing the steepest tariffs, like Turkey.
“Most of the cost seems to be borne by U.S. firms,” Cavallo said, noting that consumer prices are gradually rising as companies adjust.
The White House insists the pain will be temporary, arguing that tariffs will ultimately shift costs to foreign exporters as supply chains are restructured and production moves back to the U.S.
However, separate analyses from Yale University and the Peterson Institute for International Economics indicate that foreign producers have raised their prices instead of absorbing the tariffs, leading to higher costs across global markets.
Export prices from China, Germany, Mexico, Turkey, and India have all increased since the new trade measures took effect.
Economists warn the full impact of the tariffs has yet to be felt.
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The post International News: U.S. companies and consumers shoulder cost of Trump’s tariffs as prices rise appeared first on Belize News and Opinion on www.breakingbelizenews.com.
Posted: Monday, October 13, 2025. 10:37 am CST. By Zoila Palma: Early data show that U.S. companies and consumers—not foreign exporters—are paying most of the cost
The post International News: U.S. companies and consumers shoulder cost of Trump’s tariffs as prices rise appeared first on Belize News and Opinion on www.breakingbelizenews.com.
