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President Donald Trump\u2019s sweeping tariffs have triggered a wave of criticism \u2014 with one of the biggest concerns centering on how they could hit U.S. consumers in the wallet.<\/p>\n
According to a new analysis from Goldman Sachs, American households are expected to shoulder the majority of the costs.<\/p>\n
\u201cIf recently implemented and future tariffs have the same eventual impact on prices as the tariffs implemented earlier this year, then US consumers would eventually absorb 55% of tariff costs,\u201d Goldman economists wrote. (1)<\/p>\n
But not everyone buys into that outlook.<\/p>\n
EJ Antoni, chief economist at The Heritage Foundation and Trump\u2019s prior pick to lead Bureau of Labor Statistics, pushed back on the analysis, saying banks have repeatedly misjudged the real impact of tariffs.<\/p>\n
\u201cThese different predictions, not just from Goldman Sachs, but other banks, has consistently said that consumers are going to basically pay all of the tariffs and they’ve so far consistently been wrong,\u201d Antoni said in a recent interview with Fox Business. (2)<\/p>\n
\u201cWe’re seeing a lot of middlemen eat the tariffs. We’re seeing a lot of foreign exporters eat the tariffs and so at the end of the day, we’re just not seeing these apocalyptic predictions come true.\u201d<\/p>\n
Recent research backs up some of Antoni\u2019s argument. Analyses from institutions like Peterson Institute for International Economics (3) and the Federal Reserve Bank of St. Louis (4) show that, so far, U.S. businesses have been absorbing a significant share of the costs from the new tariffs, with the pass-through to consumers still limited. But economists also note that this can change over time: as importers adjust prices and supply chains, more of the cost could be passed on to consumers \u2014 a pattern observed in previous tariff cycles. (5)<\/p>\n
Meanwhile, prices are already rising for American households. In August, the U.S. consumer price index showed a 3.0% increase over the previous 12 months.<\/p>\n
Antoni argued that tariffs aren\u2019t the main culprit behind the recent uptick.<\/p>\n
\u201cI think most of the increases that we’ve seen in the CPI \u2014 we can actually attribute to the bad monetary policy we had at the end of last year, where we cut 100 basis points and we all of a sudden started easing when there was no reason to,\u201d he said.<\/p>\n
His takeaway? Look at the full picture rather than pinning inflation on a single policy.<\/p>\n
\u201cThese things aren’t happening in a vacuum,\u201d he said. \u201cWe got to come down, I think, from the academic ivory tower.\u201d (2)<\/p>\n
Whether or not you agree with Antoni\u2019s assessment, inflation has been quietly eroding Americans\u2019 purchasing power for decades \u2014 regardless of who\u2019s in the White House or what trade policy is in place. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 has the same buying power as just $12.05 did in 1970. (6)<\/p>\n
The good news? Savvy investors have long found ways to protect their money from inflation\u2019s bite. Here\u2019s a look at three time-tested strategies.<\/p>\n
Read more: Warren Buffett says you can’t buy time \u2014 but real estate investors have found this 1 loophole<\/a>. See how they\u2019re buying back hundreds of hours a year (for absolutely free)<\/strong><\/p>\n When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.<\/p>\n Its appeal is simple: unlike fiat currencies, the yellow metal can\u2019t be printed at will by central banks.<\/p>\n Gold is also considered the ultimate safe haven. It\u2019s not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it \u2014 driving prices higher.<\/p>\n Over the past 12 months, gold prices have surged by more than 45%.<\/p>\n Ray Dalio, founder of the world\u2019s largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold\u2019s importance in a resilient portfolio.<\/p>\n \u201cPeople don’t have, typically, an adequate amount of gold in their portfolio,\u201d Dalio told<\/a> CNBC earlier this year. \u201cWhen bad times come, gold is a very effective diversifier.\u201d<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.<\/p>\n To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals<\/a> on qualifying purchases.<\/p>\n Gold isn\u2019t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.<\/p>\n When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.<\/p>\n Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has surged 49%, reflecting strong demand and limited housing supply. (7)<\/p>\n Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn\u2019t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns).<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today. Crowdfunding platforms like Arrived<\/a> offer an easier way to get exposure to this income-generating asset class.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: browse a curated selection of homes<\/a> that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.<\/p>\n Another option is First National Realty Partners (FNRP)<\/a>, which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.<\/p>\n With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.<\/p>\n Simply answer a few questions \u2014 including how much you would like to invest \u2014 to start browsing their full list of available properties<\/a>.<\/p>\n It\u2019s easy to see why great works of art tend to appreciate over time. Supply is limited and many famous pieces have already been snatched up by museums and collectors. That scarcity also makes art an attractive option for investors looking to diversify and preserve wealth during periods of uncertainty and inflation.<\/p>\n In 2022 \u2014 shortly after U.S. inflation hit a 40-year high \u2014 a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie\u2019s New York, making it the most valuable collection in auction history.<\/p>\n Investing in art was traditionally a privilege reserved for the ultra-wealthy.<\/p>\n Now, that\u2019s changed with Masterworks \u2014 a platform for investing in shares of blue-chip artwork<\/a> by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy. It\u2019s easy to use and with 23 successful exits to date, every one of them has been profitable thus far.<\/p>\n Simply browse their impressive portfolio of paintings<\/a> and choose how many shares you\u2019d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.<\/p>\n Masterworks has distributed roughly $61 million back to investors. New offerings have sold out in minutes, but you can skip their waitlist here<\/a>. See important Regulation A disclosures at Masterworks.com\/cd.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.<\/p>\n Bloomberg (1<\/a>); @FoxBusiness (2<\/a>); Peterson Institute for International Economics (3<\/a>); Federal Reserve Bank of St. Louis (4<\/a>); Federal Reserve Bank of Boston (5<\/a>); Federal Reserve Bank of Minneapolis (6<\/a>); S&P Global (7<\/a>); Christie\u2019s (8<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Wikimedia Commons Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.…\n","protected":false},"author":3,"featured_media":336175,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[129310,166370,13635,64,7780,79,166369,21764,862,4061,151214,5005,9593,67,132,68],"class_list":{"0":"post-336174","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-american-households","9":"tag-apocalyptic-predictions","10":"tag-bureau-of-labor-statistics","11":"tag-business","12":"tag-dave-ramsey","13":"tag-economy","14":"tag-ej-antoni","15":"tag-gold-prices","16":"tag-goldman-sachs","17":"tag-jeff-bezos","18":"tag-peterson-institute-for-international-economics","19":"tag-president-donald-trump","20":"tag-robert-kiyosaki","21":"tag-united-states","22":"tag-unitedstates","23":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115446542847976270","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/336174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=336174"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/336174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/336175"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=336174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=336174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=336174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}