EddieJayonCrypto
11 Aug 25
JPMorgan Chase forecasts that U.S. consumers will bear about 60% of the costs from President Trump's tariffs, with companies absorbing 40%. Yale Budget Lab suggests that over time, consumers' share could rise from 50% to 80-90% as businesses shift more costs to them. This reflects a complex balance ...
Banking giant JPMorgan Chase has projected that the tariffs imposed by President Donald Trump will predominantly impact U.S. consumers. Meera Pandit, a global markets strategist at JPMorgan Asset Management, explained in a CNBC interview that approximately 60% of the tariff costs are expected to be passed on to consumers, while companies will absorb about 40%. This indicates that both sides will share the financial burden, though consumers will feel it more acutely.
Conversely, the Yale Budget Lab presents a more pronounced outlook based on historical data. Their economics director, Ernie Tedeschi, suggests that, although businesses may initially share the tariff costs, the majority of the burden will gradually shift to consumers. He predicts the consumer pass-through rate will increase over time—from around 50% now to potentially as high as 80% to 90% in the coming months.
Tedeschi emphasizes that businesses first gauge their pricing power and the trajectory of tariff policies before shifting costs to consumers. This evolving dynamic underscores the complex balance between businesses' ability to absorb costs and consumers' eventual responsibility for bearing the brunt of tariffs through higher prices.
These differing perspectives highlight the ongoing debate about the true economic impact of tariffs on everyday Americans, inviting investors and consumers alike to consider how trade policies translate into real-world wallet consequences.