A major new economic analysis by the Kiel Institute for the World Economy — a respected German think tank — looked at detailed data on more than 25 million import shipments. It found that about 96 % of the tariffs imposed under Trump’s recent trade policies were passed on to U.S. importers and consumers, meaning Americans are effectively paying the vast majority of the cost, not foreign producers.
• Only a very small portion is absorbed by foreign exporters.
According to the report, foreign companies exporting goods to the U.S. absorbed just around 4 % of the tariff burden by slightly lowering the prices they charged — far less than the Trump administration had claimed.
• Tariffs function like a tax on U.S. buyers.
The authors of the study described tariffs as acting much like a consumption tax on Americans, because most of the tariff costs show up in higher prices for imported goods and goods that use imported parts or materials.
📈 How Trump’s Claims Compare with the Evidence
What Trump has said:
President Trump has repeatedly argued that foreign countries would “pay” the tariffs imposed on their exports to the U.S., which would protect American jobs and strengthen U.S. manufacturing.
What the study shows:
In reality, customs data and shipment-level analysis show that American consumers and businesses have ended up paying most of the tariffs through higher prices and increased production costs — even if tariff revenue technically goes to the U.S. Treasury.
💡 Broader Economic Context
• Impact on prices:
Because importers pay tariffs first and then usually pass these added costs on to retailers and customers, the prices of many consumer goods — from clothing to electronics — have tended to rise.
• Debate among economists:
Other analyses (like from Goldman Sachs and economic research organizations) suggest that the exact split of who ultimately bears tariff costs can change over time — with importers, businesses, and consumers absorbing different shares depending on market conditions — but the dominant trend remains that Americans absorb the vast majority of the burden.
🗞 Why This Matters
This study has sparked renewed debate over U.S. trade policy and its effects on ordinary people’s wallets. The report challenges claims that tariffs can strengthen the economy without hurting consumers, showing instead that higher trade barriers often lead to higher prices for American households and companies. #Binance #CryptoNews #MarketUpdate #USATariffs #TradingInsight $DOT
