President Donald Trump’s latest round of tariffs is sending shockwaves through American households, global exporters, and entire industries, with new data and reactions highlighting the far-reaching effects of these sweeping trade policies. From the farm fields of Minnesota to the bustling ports of Antwerp, from the aisles of American furniture stores to the boardrooms of multinational corporations, the cost and consequences of Trump’s tariffs are coming into sharp focus.
According to a fresh analysis by Goldman Sachs, published October 12, 2025 and reported by The Hill, American consumers are expected to bear the brunt of these tariffs, shouldering 55 percent of the costs this year. American businesses will take on 22 percent, while foreign exporters will absorb 18 percent; the remaining 5 percent will be evaded. Although President Trump has repeatedly asserted that foreign countries would foot the bill, the numbers suggest otherwise. As the Goldman Sachs report notes, “U.S. businesses are likely bearing a larger share of the costs because some tariffs have just gone into effect and it takes time to raise prices on consumers and negotiate lower import prices with foreign suppliers.” But the economists are clear: in the coming months, the costs will increasingly be passed on to American consumers.
The Trump administration, however, stands firm in its messaging. White House spokesperson Kush Desai told The Hill that, “while Americans may face a transition period from tariffs upending a broken status quo that has put America Last, the cost of tariffs will ultimately be borne by foreign exporters.” Desai emphasized that companies are already shifting and diversifying supply chains, including bringing production back to the United States, and assured Americans that the administration would continue to deliver economic relief from what it calls Joe Biden’s inflation crisis.
But the effects are not limited to the U.S. border. Across the Atlantic, Belgian exporters are facing a staggering increase in costs due to Trump’s tariffs. De Tijd reported on October 15, 2025 that Belgian exports to the United States could become 4 billion euros more expensive this year. In 2024, Belgian exports to the U.S. totaled 27.4 billion euros, but U.S. importers paid just 258 million euros in tariffs. Now, based on tariffs effective as of October 1, 2025, duties could soar to between 4.17 billion and 4.38 billion euros in 2025—a potential 17-fold increase. The pharmaceutical sector, which exported 15.24 billion euros worth of goods to the U.S. in 2024, is particularly hard hit, with tariffs potentially rising from 300,000 euros to a jaw-dropping 2.29 billion euros this year.
Goldman Sachs’ economists, cited by De Tijd, echoed their message: U.S. consumers are expected to bear 55 percent of these increased costs. In other words, as European goods become pricier due to tariffs, American shoppers will likely feel it in their wallets.
The impact of tariffs is also being felt acutely in America’s heartland. On October 15, 2025, Minnesota Governor Tim Walz met with farmers in southern Minnesota to discuss the local fallout. Minnesota’s 26,000 soybean farmers, who export 60 percent of their crop overseas, have been hit hard. China, once their top market, purchased over $12 billion in U.S. soybeans in 2024. But due to this year’s tariffs, Chinese purchases have plummeted, leaving American farmers scrambling for buyers while competitors like Brazil and Argentina swoop in to fill the gap.
Matt Purfeerst, a sixth-generation Minnesota farmer, shared his worries with WCCO: “The fact that we are losing one of our biggest exporters for the soybean crop in Minnesota is a huge deal. We’re seeing prices right now, right around $10 a bushel for soybeans. At the peak this summer, you could probably get close to $10.75, so prices actually are holding in there, but it kind of feels like we’re going towards a cliff a little bit.” Purfeerst added that while some domestic buyers exist, they don’t compare to international demand. He prefers open markets to temporary government aid, believing bailouts are only a stopgap.
It’s not just farmers feeling the pinch. On October 14, 2025, new tariffs on imported timber, lumber, kitchen cabinets, and certain furniture took effect, as reported by The Washington Bureau. Softwood timber and lumber are now subject to 10 percent tariffs, while upholstered furniture, kitchen cabinets, and bathroom vanities face 25 percent tariffs—set to rise to 30 and 50 percent respectively on January 1, 2026. The National Association of Home Builders (NAHB) points out that about one-third of softwood lumber in the U.S. is imported, mainly from Canada, and warns that the tariffs could put homeownership out of reach for more Americans. “With both mortgage rates and construction costs already elevated, these tariffs will put home ownership out of reach for even more Americans,” said Zack Fritz, an economist for Associated Builders and Contractors.
Industry groups are divided. The American Kitchen Cabinet Alliance applauded the move, saying it protects a $14 billion industry and American jobs. John Gahm, President of Kitchen Kompact Inc., stated, “Without President Trump and his team at the U.S. Department of Commerce taking decisive action, our more than $14 billion industry would be wiped out.” But others, like Farooq Kathwari, CEO of Ethan Allen, noted the challenges of moving manufacturing back to the U.S., citing high labor and medical costs. “Getting manufacturing started in the U.S. isn’t easy. We have all these hurdles,” he said.
Economists warn that the costs will eventually be passed on to consumers, whether through higher home prices or cheaper finishes in completed homes. Chen Zhao, head of economics research at Redfin, said, “It might look like higher home prices. It could also look like cheaper finishes or simpler finishes in completed homes in order to save costs.” Daryl Fairweather, chief economist at Redfin, added, “It runs counter to the goals of making housing more affordable. In the end, you’re just going to get fewer homes built.”
The tariffs are also fueling a tense standoff with China. On October 10, 2025, President Trump threatened to impose a 100 percent tariff on all Chinese goods starting November 1, 2025, in response to Beijing’s new licensing restrictions on rare earth metals—critical for semiconductors and laptops. The S&P 500 index dropped more than 2 percent on October 10, but rebounded after Trump offered reassurances on social media. The president accused China of “purposefully not buying” American soybeans and floated retaliatory measures, including cutting off cooking oil imports from China.
On the legal front, the Supreme Court is set to hear appeals in November 2025 on whether Trump’s tariffs are permissible under the International Emergency Economic Powers Act, a 1977 law granting the president broad powers in a national emergency. However, tariffs on furniture and lumber were issued under a different statute, Section 232 of the Trade Expansion Act of 1962, which some critics argue is being stretched beyond its intended purpose.
As the dust settles, one thing is clear: the effects of President Trump’s tariffs are rippling across economies, industries, and households, both at home and abroad. The debate over who truly pays—and who ultimately benefits—shows no signs of slowing, as Americans and their trading partners brace for what comes next.
