Tariffs Will Mean Higher Gas Prices for Americans, Goldman Sachs Chief Says
“Ultimately you get a pass-through of the tax to the consumer at relatively high rates,” the commodities chief said.
The new border tax, proposed by Republican legislators, will likely do good for oil companies in America but may also lead to more expensive fuel fill-ups. That's according to Jeff Currie, global chief of commodities research at Goldman Sachs, who to CNBC.
The suggested regulation would add a tax on products coming into the country, but nothing on items going out. This would fair well for United States-based oil drillers...but not for
"You do end up with higher gasoline prices," Currie said on CNBC Tuesday. "So the question, who's ultimately going to pay for this tax, it's going to end up being U.S. consumers."
The commodities researcher believes that the new tax would cause oil refiners to want to buy domestic oil instead of paying the extra tax to import. Currie also thinks that a system like this would lead to a growth in crude oil exports.
"Ultimately you get a pass-through of the tax to the consumer at relatively high rates," he said.
You can find the full CNBC interview with Currie here.