A major study by the German Kiel Institute for the World Economy — using detailed trade data covering trillions of dollars in U.S. imports — found that:
About 96% of the cost of Trump’s tariffs on imported goods has been passed on to Americans — including U.S. importers, businesses, and everyday consumers. Only roughly 4% was absorbed by foreign producers through price reductions.
This contradicts repeated claims from President Trump’s administration that foreign countries would bear the financial burden of these tariffs.
💡 What This Means in Practice
Tariffs function more like a tax on U.S. buyers, not a charge that primarily hurts foreign exporters. The study explains that if exporters don’t lower their prices in response, the tariff cost ends up rolled into U.S. prices.
U.S. customs revenue increased by about $200 billion thanks to tariffs — much of it effectively coming from American businesses and households.
📊 Broader Economic Context
Other economic analyses (e.g., from Goldman Sachs and other research groups) have also found that American consumers and firms are bearing a significant share of tariff costs through higher prices and supply chain impacts. Even before the Kiel study, experts warned that tariffs raise costs for U.S. businesses and consumers.
Some commentators argue that this burden could be viewed as a hidden tax on U.S. consumption, since the cost doesn’t always immediately show up as a clear tariff line item on receipts.
🗣️ Reactions and Implications
Economists and critics say these findings weaken the administration’s claims that tariffs benefit U.S. consumers by forcing foreign producers to pay.
The report could influence debates over trade policy, inflation, and economic priorities ahead of upcoming political discussion's
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