Trump's tariffs are almost entirely paid for by Americans, economists conclude.

US tariffs are almost entirely paid by Americans themselves, according to a new study by the German Kiel Institute for the World Economy. Business Insider.

Trade tariffs, President Donald Trump's favorite tool, ultimately place a heavy burden on the American people themselves. According to research, 96% of the tariff costs are borne by American consumers, while only 4% are borne by foreign exporters.

"American importers and consumers bear almost the entire burden," the study's authors noted.

A report released January 19 said the additional $200 billion in customs duties the U.S. government collected in 2025 is essentially "a tax paid almost entirely by Americans."

On the subject: How Trump's Tariffs Will Hurt the Average US Family's Spending

The study contradicts Trump's claims that the costs of tariffs will not be borne by Americans, but rather by other countries and foreign exporters. The aggressive tariff policy the president launched last year has imposed additional charges on dozens of trading partners, including China, India, and the European Union.

The Kiel Institute for the World Economy, a German think tank, examined more than 25 million supply records worth nearly $4 trillion for the period from January 2024 to November 2025. The researchers concluded that tariff costs were "almost completely passed on."

"US import prices are rising almost in tandem with tariffs, while trade volumes are declining," the study says.

These findings are supported by other studies: similar results were obtained by Harvard Business School and The Budget Lab at Yale University. Analysts at Deutsche Bank and Bank of America noted last year that it is the Americans who bear the costs of the tariffs.

According to a study by the Kiel Institute, American importers and wholesalers are the first to be hit, followed by manufacturers and retailers, who are forced to decide whether to absorb additional costs or pass them on to customers. As a result, American consumers are facing rising prices—both for imported goods and for American products that use imported components. Furthermore, the researchers noted a decline in the availability of certain goods on the US market.

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Trump continues to actively use tariffs: on January 17, he announced that he would impose additional duties on Denmark and other European countries if they did not agree to a deal to hand over Greenland to the United States.

Many of Trump's tax measures could be reversed. The US Supreme Court will soon rule on the legality of several tariffs imposed under the National Security Authorization Act. Trump stated that repealing these tariffs would "put the United States in an extremely vulnerable position."

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