Donald Trump's Tariffs Are Being Picked Up by Corporate America

Neither consumers nor foreign countries are assuming much of the tariff burden. At least not yet.

- Jeanne Whalen & Sarah Nassauer

Neither consumers nor foreign countries are assuming much of the tariff burden. At least not yet.

The U.S. has collected an additional $55 billion in tariffs this year. Corporate America has largely shouldered the bill.

President Trump's new levies, which have pushed the country's tariffs to their highest levels in decades, are typically paid by importers when goods reach U.S. ports. So there is little mystery about who makes that first payment. It is often a manufacturer, a logistics or customs broker, or in some cases a retailer itself that ordered the shipment.

But economists and others have been watching for signs of who will ultimately bear the cost. Would it be foreign suppliers, by cutting prices on the front end, or consumers, by paying higher prices at the checkout stand? Or would the U.S. businesses that sit in between shoulder the burden?

It is becoming increasingly clear that U.S. businesses, from General Motors and Nike to the local florist, are absorbing much of the costs for now. In a competitive market, a company that hikes prices could lose market share to a rival that keeps its prices steady. Many are reluctant to raise prices until they absolutely must, and until they know the ever-changing tariffs are sticking around. In some cases companies have said they plan to raise prices in the months to come.

Some stability could be on the horizon. This week, the U.S. struck a deal with Japan for 15% tariffs on imported goods, and a possible deal with the European Union for 15% on its goods is in the works.

That would offer some much-needed clarity, but could also trigger broader price increases on thousands of imports.

There are signs that some foreign suppliers, particularly of Chinese goods now carrying an extra 30% tariff, have trimmed some prices to help out. That support isn't anywhere near the levels Trump promised when he said foreign countries would be footing the bill.