Americans are eating Trump's tariffs, Goldman Sachs says — and they're about to cost more

A new analysis from Goldman Sachs $GS economists indicated that just over half of the tariff costs, or 55%, will be shouldered by American consumers this year. U.S. businesses will shoulder 22% of the costs while foreign exporters are expected to take on 18%.

The Goldman Sachs economists said U.S. firms are expected to offload their costs onto consumers in the months ahead.

"At the moment, however, U.S. businesses are likely bearing a larger share of the costs because some tariffs have just gone into effect and it takes time to raise prices on consumers and negotiate lower import prices with foreign suppliers," the note said.

Goldman's projections undercut the repeated claim from the Trump administration that foreign governments would pay the import taxes. Last month's inflation report from the Bureau of Labor Statistics indicated that prices are ticking up for clothes, furniture, groceries, car parts, and other tariff-sensitive products.

In recent days, there's been fresh tremors in trade negotiations between Washington and Beijing. Trump threatened on Friday to impose a 100% tariff on unspecified Chinese products next month, in addition to implementing new restrictions on software exports.

Financial markets later plunged with investors unnerved about sizable new tariffs upending global commerce. However, Trump walked back the caustic language two days later and signaled he wanted a fair trade settlement.

"Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment," Trump wrote in a social media post on Sunday. "He doesn’t want Depression for his country, and neither do I."