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Economy
US Consumers Paying the Most for Tariffs: Wall Street Giant’s Report Exposes Trump Lies
The report from investment bank Goldman Sachs comes as President Donald Trump is piling up even more tariffs on imported goods.
Oct 14, 2025
New research from investment bank Goldman Sachs affirms, as progressive advocates and economists warned, that US consumers are bearing the brunt of President Donald Trump's trade wars.
As reported by Bloomberg on Monday, economists at Goldman released an analysis this week estimating that US consumers are shouldering up to 55% of the costs stemming from Trump's tariffs, even though the president has repeatedly made false claims that the tariffs on imports exclusively tax foreigners.
Goldman's research also found that US businesses will pay 22% of the cost of the tariffs, while foreign exporters will pay just 18% of the cost. Additionally, Goldman economists estimate that Trump's tariffs "have raised core personal consumption expenditure prices by 0.44% so far this year, and will push up the closely watched inflation reading to 3% by December," according to Bloomberg.
Despite all evidence that US consumers are shouldering the costs of the tariffs, the Trump administration has continued to insist that they are exclusively being paid by foreign countries.
During a segment on NBC's "Meet the Press" last month, host Kristen Welker cited an earlier Goldman estimate that 86% of the president's tariffs were being paid by US businesses and consumers, and then asked US Treasury Secretary Scott Bessent if he accepted that the tariffs were taxes on Americans.
"No, I don't," Bessent replied.
“Goldman Sachs says 86% of the tariffs have been paid by American businesses & consumers. Do you acknowledge that these tariffs are a tax on Americans?” - NBC
“No I don't.” - Scott Bessent
pic.twitter.com/6wtAznhpCc
— Spencer Hakimian (@SpencerHakimian) September 7, 2025
As Common Dreams reported in August, executives such as Walmart CEO Doug McMillon have explicitly told shareholders that while they are able to absorb the cost of tariffs, Trump's policy would still "result in higher prices" for customers.
Goldman's report comes as Trump is piling up even more tariffs on imported goods that will ultimately be paid by US consumers as companies raise prices.
According to The New York Times, tariffs on a wide range of products including lumber, furniture, and kitchen cabinets went into effect on Tuesday, and the Trump administration has also "started imposing fees on Chinese-owned ships docking in American ports."
The administration has claimed that the tariffs on lumber are necessary for national security purposes, although some experts are scoffing at this rationale.
Scott Lincicome, vice president of general economics at libertarian think tank the Cato Institute, told the Times that the administration's justification for the lumber tariffs are "absurd."
"If war broke out tomorrow, there would be zero concern about American ‘dependence’ on foreign lumber or furniture, and domestic sources would be quickly and easily acquired," he said.
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Trump Announces New 100% Tariff on China Over Rare Earth Minerals Restrictions
“Donald Trump’s trade policy disaster continues to batter American families and American farmers with higher prices and lost jobs," said Senate Minority Leader Chuck Schumer.
Oct 10, 2025
US President Donald Trump on Friday said he will impose an additional 100% tariff on imports from China starting next month after Beijing announced tightened controls of rare earth exports.
"It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1, 2025, impose large scale Export Controls on virtually every product they make, and some not even made by them," Trump wrote on his Truth Social network. "This affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations."
"Based on the fact that China has taken this unprecedented position, and speaking only for the USA, and not other Nations who were similarly threatened, starting November 1, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also on November 1, we will impose Export Controls on any and all critical software."
Current tariffs on Chinese imports are generally set at 30%. Trump hit the US' second-biggest source of imported goods with what he called "reciprocal" levies earlier this year after initially moving to impose tariffs as high as 145% on Beijing.
Now as then, critics noted that tariffs are essentially a tax on US consumers, as companies pass along the higher costs of doing business to their customers.
“Donald Trump’s trade policy disaster continues to batter American families and American farmers with higher prices and lost jobs," Senate Minority Leader Chuck Schumer (D-NY) said Friday. "For Americans the economic hits just keep on coming. Trump is making Americans pay more for healthcare, for groceries, for energy—they can’t afford to take much more of Donald Trump’s failed economic experiment.”
News of the potential new tariffs sent US shares and cryptocurrency prices plummeting during late trading Friday, with $1.65 trillion—more than the gross domestic product of countries including Turkey, Mexico, and Saudi Arabia—in value erased from the stock market.
Trump's post followed the Chinese government's Thursday announcement that it will require foreign companies to obtain special permission to export rare earth minerals, while also restricting their use to nonmilitary purposes.
The president's global trade war—and specifically his tariffs on China—have already caused considerable harm to Americans, especially farmers. Beijing's retaliatory measures included stopping all purchases of US soybeans, the nation’s number one export crop.
"Thanks to Trump’s tariffs on China, US soybean farmers have lost their biggest customer and are grappling with higher prices for farming equipment," former US Labor Secretary Robert Reich noted on social media earlier this week. "Now, Trump has said he will bail out farmers—supposedly with the tariff revenue that caused the crisis to begin with. Hello?"
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Fed Governor Warns 'Job Growth Has Probably Been Negative' as US Labor Market Stalls
One market analyst said the US jobs market is going through "bed rot."
Oct 10, 2025
Christopher Waller, a Federal Reserve governor, warned on Friday that the US labor market at the moment is in poor shape and showing little sign of improvement.
In an interview on CNBC, Waller said that the data released by processing firm ADP earlier this month showing that the economy lost 32,000 jobs in September was "consistent with what we're starting to see with [Bureau of Labor Statistics] data."
"Job growth has probably been negative the last few months," he explained. "It doesn't look like it's doing much better. Anecdotally... I don't hear anybody with big hiring plans. All I ever hear is, 'We're not backfilling, we're not firing, we're holding off any job things.' That's the anecdotal evidence."
Fed Governor Christopher Waller: "Job growth has probably been negative the last few months. it doesn't look like it's doing much better. I don't hear anybody with big hiring plans." pic.twitter.com/aXDZPNTixq
— Aaron Rupar (@atrupar) October 10, 2025
Waller's analysis was shared by Ed Al-Hussainy, rates strategist with Columbia Threadneedle investments, who told Axios on Friday that the job market was "bed rotting," with employers reluctant to make any major hiring commitments in the face of economic uncertainty.
Al-Hussainy also warned that the current problems with the job market could "continue to get worse, until they reach a tipping point where consumption starts to degrade, and then you have another recession scare."
Earlier in the week, Fortune reported that Mark Zandi, chief economist at Moody's Analytics, estimated that there was "essentially no job growth" in the last month, while pointing to the Conference Board's recent report showing that US consumers haven't been this pessimistic about the labor market since the end of the Covid-19 pandemic.
"There’s no better predictor of changes in unemployment, which thus likely rose again in September," he added.
Abby McCloskey, a columnist at Bloomberg and a former economist at the conservative American Enterprise Institute, argued in a Friday column that the US economy had now slowed down so much that even supporters of President Donald Trump were rating it unfavorably.
"Only 44% of Republicans think the economy is excellent or good, according to new data from the Pew Research Center," McCloskey explained. "Compare this to the soaring approval of GOP voters in Trump’s first term before Covid hit—when 81% thought the economy was good."
She then noted that, despite a record-breaking stock market and stabilized inflation, voters' concerns about the economy appeared to be justified.
"Despite enormous tax cuts in this summer’s reconciliation bill and sweeping reductions to the federal workforce—things Republicans would typically cheer—tariffs and political uncertainty are taking a toll," she argued. "When a voter balances the tax cuts from the One Big Beautiful Bill Act against tariffs raising prices on everything from groceries to clothes, it feels like running just to stay in place."
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Living Wage, Affordability Platforms Like Mamdani and Platner’s Have 'Major Electoral Advantage': Polls
Democratic leaders in recent months have refused to throw their support behind candidates who are centering affordability in their campaigns.
Oct 09, 2025
As One Fair Wage launched a new political action committee focused on electing candidates who will push for a true living wage that makes it possible for working people across the US to thrive, the coalition said two new surveys provide a "roadmap for 2026" for candidates and Democratic leaders who are willing to follow it.
The polls were conducted by Democratic polling firm Lake Research Partners on behalf of One Fair Wage (OFW) and the Living Wage for All Coalition, and found "overwhelming support for living wage policies in competitive swing districts and in major cities."
In 18 competitive congressional districts across the country, the first survey found that 55% of respondents supported raising the minimum wage for all workers to $25 per hour, even after being exposed to opposition messaging.
Latino voters showed the strongest support at 72%, along with people of color overall at 64%, women at 60%, and people under age 40 at 59%.
With grocery prices harder to afford than they were one year ago in many swing districts, as another poll showed last week, 56% of people said raising the minimum wage is a high or medium priority for them, including 71% of Democratic voters.
The firm also asked voters in major cities with high costs of living, including New York, Los Angeles, Chicago, and San Francisco, whether they supported raising the minimum wage to $30 in those areas, and found similar results.
Two-thirds said they backed gradually raising the minimum wage for all workers to $30 per hour.
"Support is strongest among the very voters Democrats must mobilize to win in 2026 and 2028: Black voters (80%), Latino voters (73%), young voters under 40 (72%), and women (72%) all back the proposal," Lake Research Partners said.
"If Democrats don’t deliver, the right will continue to exploit the affordability crisis to divide working people. Delivering real affordability is how we restore trust—and how we save democracy.”
Support for the proposal was highest in New York City, where Assembly Member Zohran Mamdani (D-36) has included a $30 minimum wage proposal as part of his mayoral campaign platform—one that's heavily focused on making the city more affordable for all New Yorkers.
Seventy-two percent of New Yorkers said they supported the proposal.
The polling comes as endorsements from lawmakers and advocacy groups that have long been aligned with the Democratic Party have piled up for Mamdani—and as powerful party leaders in New York including US House Minority Leader Hakeem Jeffries, Senate Minority Leader Chuck Schumer, and Sen. Kirsten Gillibrand have continued to refuse to publicly support the democratic socialist.
Saru Jayaraman, president of OFW, warned that a failure to deliver on affordability and living wages before the midterm elections next year will make "saving democracy" from President Donald Trump and the Republican Party impossible.
"We represent 13.6 million restaurant workers in America," Jayaraman told Common Dreams. "And over the last nine months, they've repeatedly asked us: 'You want us to come to a rally on a Saturday to save democracy? I work three jobs and I earn $3 [an hour]. What has democracy done for me lately? Nothing.'"
Along with electing candidates who center living wages and affordability, Jayaraman said in a statement that delivering on the issue "means passing Living Wage for All legislation in every blue state next spring and ensuring no one is left behind."
"If Democrats don’t deliver, the right will continue to exploit the affordability crisis to divide working people," she said. "Delivering real affordability is how we restore trust—and how we save democracy.”
Joining OFW in launching the Make America Affordable Now PAC on Thursday are Democratic candidates who are centering affordability and living wages in their campaigns, including Minnesota state Sen. Omar Fateh (D-62), who is running for mayor of Minneapolis; Seattle mayoral candidate Katie Wilson; and US Senate candidate Graham Platner of Maine.
Like Mamdani, Platner's candidacy has elicited excitement from progressives as he's spoken out against US support for Israel's assault on Gaza and the oligarchy that has seen billionaires like Trump megadonor Elon Musk amass more political power as working people struggle to afford healthcare, groceries, and other essentials. He has put forward a platform that calls to raise the federal minimum wage and index it to inflation.
But Democratic leaders have shown little enthusiasm for Platner's embrace of policies that would make life more affordable for Mainers—despite polls showing that such proposals could help him win a seat that's been held by Sen. Susan Collins (R-Maine) since 1997.
Schumer has led a push for Democratic Gov. Janet Mills to enter the race instead of backing Platner, who in addition to backing broadly popular policies, has shown to be a formidable fundraiser—bringing in more than $4 million since announcing his candidacy in August.
On Thursday, Sen. Bernie Sanders (I-Vt.)—who has endorsed Platner—denounced Democratic leaders for meddling in the race.
"It’s disappointing that some Democratic leaders are urging Gov. Mills to run," said Sanders. "We need to focus on winning that seat and not waste millions on an unnecessary and divisive primary."
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