Trump's tariffs will raise prices for Americans, inflation will rise to 3.2% – Goldman Sachs

Duties of the President of the United States Donald Trump will accelerate inflation in the country. The core personal consumption expenditures (PCE) index may reach 3.2% year-on-year by the end of the year. This was warned by Goldman Sachs analysts, writes Bloomberg.

Excluding tariffs, inflation in the US would have been around 2.4%. In June 2025, it was 2.8%.

So far, more than 60% of the costs of the tariffs are borne by American companies, but in the near future this figure will fall to less than 10%, and the main burden will fall on the shoulders of buyers, as producers will raise prices.

Also, some American manufacturers that have no competition from abroad have already raised prices and benefited from the tariffs. This further pushes inflation up.

According to Goldman Sachs, US consumers have already absorbed about 22% of the cost of the tariffs through June, but their share could rise to 67% if the new tariffs repeat the trends of previous years.

Currently, the tariffs have increased the core consumer price index by 0.2%, and by the end of the year they will further increase it by another 0.66%.

This confirms the general opinion of economists that tariffs contribute to price increases at the very time when the Fed is considering changing its monetary policy.

Donald Trump publicly called on the Fed to cut rates and even criticized Federal Reserve Chairman Jerome Powell.

• August 7 increased US duties came into force introduced by the Trump administration. They affect dozens of countries around the world, including the European Union.