Wall Street Breakfast U.S. companies absorb tariff hit
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Aug 11, 2025 U.S. companies are shouldering two-thirds of tariff costs, according to Goldman Sachs. NVIDIA and AMD face new challenges, as they must pay tariffs on AI chip sales to China. C3.ai is undergoing a major shake-up in its sales team after drastically reducing its revenue outlook by 33%. The podcast also touches on the hidden ambitions of tech giants behind notable delays, revealing how they are planning for the future.
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Tariffs Lift Core PCE, Masking Softer Trend
- Goldman estimates tariffs raised core PCE by 0.2 percentage point through June and will add 0.66 point the rest of the year.
- That implies headline core PCE near 3.2% year-over-year but a softer 2.4% underlying trend net of tariff effects.
Tariff Costs Mostly Hit U.S. Firms
- Goldman finds U.S. companies have absorbed most tariff costs through June, not consumers or foreign exporters.
- The analysis shows 64% borne by firms, 22% by U.S. consumers, and 14% by foreign exporters.
U.S. Chips May Pay Revenue Share To Sell In China
- NVIDIA and AMD reportedly agreed to hand over 15% of China AI chip revenues to the U.S. in exchange for export licenses.
- NVIDIA told Seeking Alpha it follows U.S. rules and said it has not shipped H20 to China for months.