Trump claims American consumers won't bear the costs of tariffs — but not everyone agrees
The Trump administration is struggling to defend its tariffs that have made a lot of things expensive for common consumers. It claims that Americans aren't bearing the burden of his sweeping reciprocal tariffs, since it is something foreign governments and firms are paying. However, several reports suggest that consumers are having to pay a large part of the tariff costs, as corporations have publicly stated that they are passing on the burden to consumers through higher prices.
Months after introducing the tariffs using the International Emergency Economic Powers Act, President Trump defended his policy, citing a minimal rise in prices at the time. He argued that Americans aren't affected by the tariffs, and it has been great for the American economy. "It has been shown that, for the most part, Consumers aren't even paying these Tariffs; it is mostly Companies and Governments, many of them Foreign, picking up the tab," Trump wrote on his social media platform, Truth Social, in August. The messaging has remained pretty consistent since then, as Trump and his administration defended the tariffs.
Despite issuing rollbacks and a $12 billion bailout for farmers hit by the trade war, the Trump administration has argued that the tariffs are great for the American economy in the long term, and they intend to keep them in place, even if the Supreme Court rules them illegal. The president even cited the bailout for farmers as proof of concept, telling CNN, “We’ve taken in so much money with the tariffs now that it’s such a pleasure. Without it, we wouldn’t be able to help you. We’re the richest country in the world now.”
From manufacturers of household products to industry equipment, companies have admitted that they are increasing prices to compensate for tariff costs. In a recent earnings call, John Deere, one of the leading manufacturers of farm equipment, told its corporate executives that the company's tariff bill would double from $600 million to $1.2 billion in 2026. The executives assured that they will "capture the incremental exposure" of tariffs by adjusting their "price/cost expectations for 2026," which means they are telling investors that they will shift the tariff costs to consumers by raising prices of their tractors, machinery, farm equipment, and more, according to the Institution on Taxation and Economic Policy.
The ITEP cited statements from another multibillion-dollar manufacturer of transportation, aerospace, and industrial goods, ITT Inc. In a December conference, the company reportedly told investors that it would increase prices as tariffs continued to create disruptions for its business. The “customer is taking care of tariffs," the executives said as per the transcript of the conference provided by Seeking Alpha.
Even household products maker, Newell Brands, which is behind Sharpie, Elmer's Glue, Paper Mate, Yankee Candle, and more, stated that they too raised prices to cope with the tariff costs. In a December presentation, the company executives stated that they increased prices "early and pretty aggressively" on their household products to offset the tariff costs, as per the transcript.
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