America's own goal: Americans pay almost entirely for Trump’s tariffs
www.kielinstitut.de
Contrary to US government rhetoric, the cost of US import tariffs are not borne by foreign exporters. Instead, they hit the American economy itself. Importers and consumers in the US bear 96 percent of the tariff burden, according to new research from the Kiel Institute for the World Economy.

Here is the study download: Americaʼs Own Goal: Who Pays the Tariffs? - (pdf)

  • Contrary to US government rhetoric, the cost of US import tariffs are not borne by foreign exporters. Instead, they hit the American economy itself. Foreign exporters absorb only about 4% of the tariff burden—the remaining 96% is passed through to US buyers.

  • Using shipment-level data covering over 25 million transactions valued at nearly $4 trillion, we find near-complete pass-through of tariffs to US import prices.

  • US customs revenue surged by approximately $200 billion in 2025—a tax paid almost entirely by Americans.

  • Event studies around discrete tariff shocks on Brazil (50%) and India (25–50%) confirm: export prices did not decline. Trade volumes collapsed instead.

  • Indian export customs data validates our findings: when facing US tariffs, Indian exporters maintained their prices and reduced shipments. They did not “eat” the tariff.

  • Peereboominc@piefed.socialEnglish
    15·
    1 month ago

    You buy something from abroad and your country is adding an extra tax on it. Who else would pay the tax other than you, the buyer.

    Tarrifs are great tool to make imported products more expensive so buyer will pick the local product.

    • egrets@lemmy.world
      31·
      1 month ago

      who else would pay the tax

      Two other obvious options here:

      • Exporters take some of the hit (by lowering their prices) because it’s still profitable even though it eats into their margins. I would have expected this segment to have been much bigger than it actually is per this study.
      • Exporters find other markets or reduce their output. The overview doesn’t cover the drop in exports to the US (maybe it’s in the details?), so it’s hard to know the degree to which this has happened.
      • Peereboominc@piefed.socialEnglish
        2·
        1 month ago

        Yes, exactly.

        Another option would be to lower the quality by using cheaper materials or downsize the product (10 % less candy in a bag for the same price)

  • Doomsider@lemmy.world
    1·
    1 month ago

    Upwards of 96% of tariffs paid by the consumer according to the study. This administration has greatly increased taxes on the working class. All under the sham of protecting US business.

    The worst part is they have been doing pump and dumps before and after imposing these tariffs. The whole show is just disgusting.