Deutsche Bank: The cost of tariffs is borne by Americans themselves, and the dollar is facing downward pressure

George Saravelos, an analyst at Deutsche Bank, wrote that the dollar was under downward pressure because Americans were bearing the brunt of the cost of tariffs. Mr. Saravelos noted that sales prices should fall if the cost of tariffs was borne by a foreign country, but this trend did not occur except in isolated cases. However, he added that with US inflation still under control, it was not consumers but importers who bore the main burden of tariff costs. "Since the cost of tariffs is mainly borne by the US, this is another negative factor for the dollar," Mr. Saravelos said.