Deutsche Bank analysts concluded that U.S. companies are absorbing the costs of tariffs rather than passing them onto consumers, as evidenced by minimal increases in the consumer price index. Despite $100 billion in tariff revenue collected by the U.S. government, there has been little reduction in imported goods prices. Analysts indicated that tariffs are affecting the dollar and warned of upcoming pressure on consumer prices. They pointed out that global exporters are not experiencing significant impacts, giving them an upper hand in trade negotiations.
"Americans are mostly paying for the tariffs," the strategists said in a Tuesday note, emphasizing the financial burden borne by U.S. consumers and companies alike.
"The top-down macro evidence seems clear: Americans are mostly paying for the tariffs," stating that U.S. companies have largely absorbed the tariffs into their profit margins.
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