Tariffs are starting to bite consumers and businesses, economists say [View all]
Source: CBS News
Updated on: October 22, 2025 / 8:41 AM EDT
Trump administration tariffs imposed this year on dozens of nations and a range of industries are fueling inflation, especially for goods that are widely imported into the U.S., a recent analysis shows.
Product categories seeing some of the biggest price hikes due to tariffs include furniture, car parts, electronics and musical instruments, according to economists at the Federal Reserve Bank of St. Louis. The findings are based on research models estimating tariff-related price hikes and drawing on Personal Consumption Expenditures (PCE) data, a widely used gauge of inflation.
Importers bear the cost of tariffs, typically passing at least some of the added expenses to consumers, economic research shows.
The St. Louis Fed researchers found that companies passed 35% of tariff costs onto consumers from May through July. Other research from Goldman Sachs suggests that businesses could eventually pass on as much as 55% of added tariff costs to consumers. Companies would swallow 22% of the extra costs, while foreign exporters would absorb 18% of the expenses, economists with the investment bank found.
Read more: https://www.cbsnews.com/news/inflation-tariffs-trump-prices-consumers/
Link to St. Louis Federal Reserve REPORT - How Tariffs Are Affecting Prices in 2025
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