Bank of America: Trump's tariffs boosted US inflation

"We believe there is no doubt about this. Tariffs have pushed prices higher," the bank's experts wrote.

After Trump imposed the tariffs, many economists warned that the cost would be passed on to consumers. An S&P Global study published in October indicated that this would be the case for most of the estimated $1.2 trillion in tariff costs to businesses this year.

Bank of America believes there is clear evidence of higher prices paid by consumers due to tariffs. It estimates that they have increased core consumer price inflation by 0.3-0.5 percentage points. The bank's economists believe that consumers will bear 50-70% of the total cost of tariffs.

This suggests that tariffs will continue to exert upward pressure on inflation in the coming months, especially as the effective tariff rate rises further, the report said.

Goldman Sachs also believes that more than half the cost of President Donald Trump's tariffs will fall on consumers.

Meanwhile, mortgage broker Lending Tree estimates that, assuming Americans maintain holiday spending at last year's level, the additional cost of tariffs passed on to consumers could reach $28.6 billion and $12 billion to businesses. This means the average American will have to spend about $132 more than a year ago due to tariffs alone, primarily on electronics, clothing, and accessories. Matt Schulz, LendingTree's chief financial analyst, emphasizes that this is a significant amount.

"This means that more Americans will have to take on credit card or loan debt to cover expenses," he said.

Lending Tree notes that during the holiday season last year, American consumers spent a total of $377.7 billion on imported goods. A staggering 88% of clothing and accessories were imported, and 69% of electronics.