European Central Bank President Christine Lagarde warned on Sunday that American consumers are “yet to feel the pain” from tariffs, stating that the full impact is only “a question of time” as corporations temporarily absorb the costs.

Consumers To Soon Feel Two-Thirds Of Tariffs’ Impact

Speaking on CBS‘s “Face the Nation,” Lagarde explained that the tariffs imposed by the Donald Trump administration have caused the cost of European goods to jump from 1.5% to 13%.

She said this 11-percentage-point hike is currently being split three ways: “one-third on the exporter… one-third of the U.S. importer and one-third of the consumer.”

The two-thirds currently absorbed by businesses, she said, “is based on a squeeze of their margins.” Lagarde questioned how long those companies could sustain the hit. “How long are they going to put up with a squeeze of the margin, to be seen,” she questioned. “And when they don’t, because it’s becoming too tight, then it will be on the consumer.”

Meanwhile, talking about the U.S. consumers, Ryan Detrick, the chief market strategist at Carson Research, shared a Goldman Sachs report on X, stating that “consumers are paying 37% of ...