America's own goal: Americans pay almost entirely for Trump's tariffs [View all]

[applegrove]

https://www.kielinstitut.de/publications/news/americas-own-goal-americans-pay-almost-entirely-for-trumps-tariffs/

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.

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 Kiel Institute and one of the authors of the study. "The claim that foreign countries pay these tariffs is a myth. The data show the opposite: Americans are footing the bill." The tariffs act like a consumption tax on imported goods. At the same time, both the variety and volume of available products decrease.

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The research team analysed more than 25 million shipment records covering a total value of almost four trillion US dollars in US imports. The findings are clear:

* US customs revenue increased by approximately 200 billion US dollars in 2025.

* Foreign exporters absorbed only about four percent of the tariff burden, 96 percent passed through to US buyers.

* Trade volumes collapsed, but export prices did not fall.

Applegrove:

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