Americans or Companies, Who's Paying The Price of Trump's Tariffs?

In 2024, U.S. import tariffs averaged just 2%. Now, they’ve surged to over 16%—the highest since the 1930s

From August 7, the U.S. will raise tariffs on all its imports, which range from 10% on imports from the UK to 50% for imports from Brazil. 

From 7th August, Indian imports into the U.S. will be charged a 25% tariff, with additional penalties also expected to come as mentioned by Donald Trump

Donald Trump believes that sellers will face the effects of tariffs. However, in economists' opinion, the Trump tariffs will hurt Americans

Studies from the first Trump era show full tariff costs were passed on to U.S. consumers. Prices went up

Core inflation hasn’t spiked yet. In June, U.S. consumer prices rose just 0.2%, below expectations

Companies like Ferrari, Grenadier, and Canon are raising their prices accordingly

On the other hand, some foreign suppliers and manufacturers like Nintendo, TIRTIR, and Games Workshop are prepared to absorb the duties

The suggested reasoning behind companies shouldering the duties is said to be the fear of loosing the American consumer

For now, companies are ready to absorb the additional cost to retain their customer base.

However, things are uncertain in the long run. Everyone pays—especially U.S. businesses and consumers. Trade wars don’t come cheap.