Fact check: What percentage of tariff costs are typically passed on to consumers?

1. Summary of the results

Based on the analyses provided, no source offers a specific percentage of tariff costs that are typically passed on to consumers. However, the available data reveals important patterns about tariff pass-through rates:

• Current tariff burden is substantial: The average US tariff rate now sits at 18.3%, representing the highest level since 1934 and a dramatic increase from just 2.4% when Trump took office ^[1]
• Pass-through varies by company strategy: Some companies choose to "eat the tariffs" by not passing the full cost to customers, while others are beginning to shift costs to consumers as their profit margins become squeezed ^{[1] [2]}
• Estimated consumer impact: One analysis suggests that the average aggregate price impact results in an increase in consumer prices of 1.8% in the short-run, which implies that a significant portion of tariff costs are being passed through to consumers ^[3]
• Cost distribution is complex: Most economists indicate that tariff costs are typically split among three parties: exporters overseas, importers in the U.S., and American consumers ^[4]

2. Missing context/alternative viewpoints

The original question lacks several crucial contextual elements that would provide a more complete understanding:

• Industry-specific variations: Different sectors may have vastly different pass-through rates depending on competition levels, product substitutability, and market dynamics
• Timeline considerations: Companies initially tried to absorb tariff costs but are now reaching a point where they must pass costs onto consumers as margins become unsustainable ^[2]
• Scale of corporate impact: Major corporations like General Motors have reported $1.1 billion in tariff costs, demonstrating the massive financial pressure on businesses ^[1]
• Government revenue perspective: The U.S. collected $29 billion in tariff revenues in July, setting a new monthly record, which benefits government coffers while potentially burdening consumers and businesses ^[5]

3. Potential misinformation/bias in the original statement

The original question itself does not contain misinformation, as it simply asks for factual information. However, the framing could be misleading in several ways:

• Oversimplification: The question implies there is a standard percentage when the reality is that pass-through rates vary significantly based on market conditions, company strategies, and time horizons
• Missing economic complexity: The question doesn't acknowledge that tariff costs are distributed among multiple parties rather than simply being "passed on" to consumers in a straightforward manner ^[4]
• Temporal bias: The question doesn't account for the fact that pass-through rates change over time as companies exhaust their ability to absorb costs and market conditions evolve ^[2]

The lack of specific percentage data in the sources suggests that tariff pass-through rates are highly variable and context-dependent, making any single percentage figure potentially misleading without proper qualification.