Americans Are Paying for Trump's Tariffs, Not Foreign Businesses

Who is paying for US President Donald Trump's tariffs? So far, American businesses and consumers.

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NEW YORK -

General Motors was the latest US company to disclose how the tariffs are raising costs, with the car giant saying on July 22 that the duties dented profits by more than US$1.1 billion (S$1.4 billion) as it chose to absorb the blow.

That helps explain why car prices did not rise in last week's inflation data, while robust price increases for other commonly imported goods like toys and appliances showed those tariff expenses are being passed on to consumers.

Meanwhile, import prices excluding fuel were up notably in June, suggesting foreign companies are not shouldering the burden by offering US firms lower prices — challenging the President's claims that other countries pay the rate.

While customs duties are giving a significant boost to US revenues, data shows those coffers are being filled domestically.