Meanwhile,
Customs duties: who pays addition?:
No offense to Donald Trump. Therefore, one thing is certain, the note will not be set by the trade partners of the United States. Moreover,
The question fuels discussions between economists. Furthermore, speculation of market players, disagreements between central bankers and Trump’s diatribes: will the increase in American customs duties lead to the surge of prices for the consumer?
To date. Consequently, the debate is far from being decided and the inflation data for the month of July, published in mid-August, have only maintained the vagueness. Therefore, On the one hand. Therefore, the inflation of consumer prices has not marked frank acceleration, consolidating supporters of a benign impact of customs duties. Furthermore, On the other hand. however, production price inflation has risen upstairs, letting fear of transmission in consumer prices in the coming months.
To answer them in a relevant way. customs duties: who pays addition? the question deserves to be reformulated: who pays the addition of prices today and who will pay it tomorrow? No offense to Donald Trump. one thing is certain, the note will not be set by the trade partners of the United States. While some exporters can certainly adjust their prices in the face of the surge in customs duties. the proportion remains modest. According to a recent study by Goldman Sachs. until June 2025, the share of customs costs paid by foreign exporters was less than 15%. According to this same study. two thirds of the invoice were, until then, settled by American companies, via a compression of their margins, while only a quarter weighed on consumers.
A situation that could drastically evolve during the second half. Goldman Sachs estimates as well as by October, two thirds of customs costs could be borne by American consumers. Several elements accredit this customs duties: who pays addition? thesis. On the one hand. the recent flight of production prices inflation is explained in particular by a strong increase in the “commercial services” component. However. it measures, in a way, the margin of distributors and its acceleration suggests that companies are indeed beginning to pass the increases in costs linked to customs duties in selling prices.
On the other hand, recent quarterly results of distribution companies have generated comments on the impact of customs tariffs. The Walmart CEO indicated that “the cost of customs duties increases each week”. adding that “the price increase affects consumers with low and means revenue”. A declaration which suggests that the company passes the cost increases in its selling prices. and which echoes that of the financial director of Home Depot, explaining that the company was going to carry out prices on a certain number of products.
The biggest of the impact of customs customs duties: who pays addition? duties in consumer prices could therefore be to come. A situation that would further complicate the already uncomfortable position of the federal reserve. Under pressure from the White House. in a context of race for the succession of its president, Jerome Powell, the central bank is likely to lower its rates in September … and to see, quickly after, a marked restart of inflation. A particularly unpleasant overhang for any central bank.
Opinion written on August 22, 2025
Customs duties: who pays addition?
Further reading: No, Rolex did not win a round against the Personalization Workshop Artisans de Genève – World grants mixed after inflation on the producer side in the United States – EU entrance/exit system: what EES will change (or not) for foreign tourists – The United States will not impose customs duties on gold, announces Trump – USA: eleven candidates to direct the Fed according to the secretary of the Treasury.
