Treasury Secretary Scott Bessent rejects claims tariffs are a tax on Americans

Treasury Secretary Scott Bessent rejects claims tariffs are a tax on Americans, while Goldman Sachs warns consumers and businesses bear the burden. What this debate means for the economy.

I'm Aadi, MBA in Marketing and Finance. I focus on how policy decisions shape markets, consumer costs, and investment strategies. With experience in financial analysis and trade policy, I connect political debates to real economic impact.

Are tariffs a growth engine or just another tax dressed in disguise? That question is now at the heart of a clash between Treasury Secretary Scott Bessent and Goldman Sachs. Both sides claim to have the numbers, but their interpretations couldn’t be more different. For investors, entrepreneurs, and business students, the debate isn’t academic. It shapes inflation trends, consumer spending, and corporate margins.

This piece is for readers who want more than sound bites. If you’re trying to understand how tariffs move stock markets, squeeze supply chains, or open new revenue streams for governments, keep reading.

1.  Scott Bessent insists tariffs aren’t a tax on Americans.
2.  Goldman Sachs says 86 percent of tariffs are paid by businesses and consumers.
3.  Washing machine prices spiked 12 percent after tariffs.
4.  U.S. Treasury pulled in $27 billion in duties in June 2025 alone.
5.  Debate raises key questions on whether tariffs fuel growth or weigh on households.

Goldman Sachs published a report showing most of the Trump-era tariffs landed squarely on American importers and consumers. Their logic is simple. Tariffs raise import costs, businesses pass them along, and shoppers feel it at checkout.

Bessent isn’t buying it. When asked directly if tariffs are a tax, his reply was blunt: “No, I don’t.” He argued that under Trump, the economy hit records in GDP and stock performance, proving tariffs strengthened rather than weakened growth. He even joked about a career of betting against Goldman Sachs’ calls.

But humor aside, he doubled down on numbers, claiming tariffs delivered “historic results” by raising government revenue and could push GDP growth up to 5 percent.

There’s no denying the Treasury’s haul. June 2025 alone brought in $27 billion from customs duties, a $20 billion jump from the previous year. On paper, that’s a fiscal win. Yet behind the headline is a transfer of wealth. Importers pay duties at the border, often padding retail prices to recoup the loss. Consumers notice it in products like washing machines, which saw prices rise by 12 percent after tariffs were introduced.

The Wall Street Journal and Barron’s both point out that tariff revenue is essentially pulled from the private sector into government accounts, not created out of thin air. That’s why many economists still call tariffs a disguised tax.

If you run a business that relies on imports, tariff debates aren’t political noise. They decide whether your margins shrink or survive. For investors, tariff revenue numbers may look like a macroeconomic boost, but they also signal potential inflation pressures that eat into consumer spending power.

Consider a mid-sized furniture importer in North Carolina. Higher duties on raw materials raise production costs, which forces a price bump at retail. Shoppers buy less, inventory moves slower, and credit lines get tighter. That ripple reaches local banks, logistics firms, and even real estate developers who depend on steady trade growth.

For traders, this clash also offers clues on policy risk. If Trump returns to office and tariffs expand, equities tied to import-heavy sectors such as consumer electronics and apparel could face headwinds. On the flip side, domestic producers might benefit from reduced competition.

At its core, this debate isn’t about who’s right, Bessent or Goldman Sachs. It’s about distribution of cost. Tariffs clearly generate revenue, but is it sustainable growth when households and businesses are footing the bill? Or is it a short-term boost that eventually weakens competitiveness?

This split in narrative will likely shape 2025’s political and investment environment. The outcome matters not just for Washington but for anyone managing cash flow, planning market entries, or making long-term bets in trade-sensitive industries. You can explore Goldman Sachs’ full tariff analysis here.

5 to Do’s and Don’ts for your Business Strategy:

1.  Do track tariff announcements before signing long-term import contracts.
2.  Do model tariff costs into pricing strategies early.
3.  Do consider sourcing diversification to reduce dependency on tariff-hit markets.
4.  Don’t assume tariff revenue is neutral. It often shifts costs downstream.
5.  Don’t ignore consumer behavior shifts when prices rise.

 

Treasury Secretary #ScottBessent rejects claims tariffs are a #tax on #Americans, while @GoldmanSachs warns #consumers and businesses bear the burden. What this debate means for the #economy.https://t.co/urmyMQfFf1

— Fintech News and Business Insights (@learnwebstories) September 7, 2025