According to the August 11, 2025 research note by Goldman Sachs economists Jan Hatzius and Elsie Peng, what percentage of import tariff costs through June 2025 were absorbed by foreign exporters, and what percentage was passed through to American consumers?

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According to the August 11, 2025 research note by Goldman Sachs economists Jan Hatzius and Elsie Peng, what percentage of import tariff costs through June 2025 were absorbed by foreign exporters, and what percentage was passed through to American consumers?

Accepted Answer

Goldman Sachs economists Jan Hatzius and Elsie Peng found that through June 2025, foreign exporters absorbed just 14% of the U.S. import tariff costs, while American consumers absorbed 22% (with U.S. businesses covering the remaining 64%). They project that by October 2025, exporters’ share will edge up to 25% and consumers’ share will surge to 67% as firms run through pre-tariff inventories, a shift expected to push core PCE inflation to 3.2% year-over-year by December. (, )

According to the August 11, 2025 research note by Goldman Sachs economists Jan Hatzius and Elsie Peng, what percentage of import tariff costs through June 2025 were absorbed by foreign exporters, and what percentage was passed through to American consumers?

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