U.S. tariff costs largely passed to American buyers: Study
The Kiel Institute reports tariffs raised $200 billion in 2025, with 96% of costs passed to U.S. importers and consumers, acting as a consumption tax, while foreign exporters absorbed just 4%.
- On Monday, the Kiel Institute for the World Economy released a study showing about 96% of President Donald Trump's tariff costs passed to U.S. importers and consumers from more than 25 million shipment records worth nearly $4 trillion.
- The White House said tariffs are paid by foreign exporters, with Kush Desai stating, `The average tariff imposed by America has increased by almost tenfold under President Trump.`
- Kiel researchers noted foreign exporters held prices and cut shipments; Julian Hinz stated, `The claim that foreign countries pay these tariffs is a myth.`
- The immediate result is more revenue for the U.S. Treasury but higher costs for American businesses and households, appearing as higher prices and reduced availability for U.S. consumers.
- The Supreme Court is expected to rule soon on challenges to tariffs after earlier this week, as President Donald Trump threatened to expand duties toward Europe, prompting emergency talks and counter-tariffs.
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109 Articles
Who bears the burden of Trump’s tariffs? The American consumer, according to new study
Trump’s escalating tariff announcements have rested on the premise that tariffs can be deployed to extract concessions from trading partners, and 'return' money to the US. However, the tariff burden has effectively translated into a distorted consumption tax on Americans
New Research Shows Americans Bear 96% Of US Tariff Costs » Sons of Liberty Media
A study by the Kiel Institute confirms the obvious. Americans Pay Almost Entirely for Trump’s Tariffs Please consider Americans Pay Almost Entirely for Trump’s Tariffs Although the US government intended the tariffs to target foreign businesses, the policy actually harms the domestic economy. “The tariffs are an own goal,” says Julian Hinz, Research Director at the …
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