Trump`s tariffs are almost entirely paid for by Americans

ArmInfo. The burden of the trade tariffs imposed by US President Donald Trump in 2025 falls almost entirely on Americans, according to a new study by the Kiel Institute for the World Economy.

This conclusion contradicts Trump's own assertions, who has repeatedly stated that the tariffs will be borne by foreign suppliers.

The tariffs have not resulted in an influx of foreign wealth into the US, notes Julian Hinz, a professor of economics at Bielefeld University and one of the study's authors.

After analyzing $4 trillion worth of shipments from January 2024 to November 2025, the experts concluded that foreign exporters absorbed only 4% of the additional costs, lowering prices slightly. The remaining 96% was borne by American buyers and importers.

Thus, instead of becoming a tax on foreign producers, the tariffs have become a levy on US consumption.

Last year, nearly $200 billion in new tariffs "were almost entirely paid for by Americans," says Hinz. Over time, this will likely lead to a rise in inflation in the US, which has remained moderate so far.

Economists at the Kiel Institute cite several possible reasons why exporters have not actively reduced prices on their products shipped to the US. Specifically, they may have found buyers in other countries, or they believe the final tariff level will change and that it is advisable to maintain prices at current levels until then.

Tariffs on some goods are 50% or more, making their supply unprofitable.

As for US importers, many have long-standing and established relationships with suppliers and have not yet been able to find replacements. (INTERFAX)