"By analyzing $4 trillion of shipments between January 2024 and November 2025, the Kiel Institute researchers found that foreign exporters absorbed only about 4% of the burden of last year's U.S. tariff increases by lowering their prices, while American consumers and importers absorbed 96%. The tariffs had a significant effect on trade volumes: Facing higher U.S. tariffs, Indian exporters maintained their prices but reduced the volume of shipments to the U.S. by 18%-24% relative to the European Union, Canada and Australia, the report found."
"Rather than acting as a tax on foreign producers, the tariffs functioned as a consumption tax on Americans, the report said."
An analysis of $4 trillion of shipments between January 2024 and November 2025 found that foreign exporters absorbed about 4% of the burden of U.S. tariff increases by lowering their prices, while American consumers and importers absorbed 96%. The tariffs produced a substantial change in trade flows: facing higher U.S. tariffs, Indian exporters held prices steady but cut shipment volumes to the U.S. by about 18%–24% compared with the European Union, Canada and Australia. The tariffs therefore acted largely as a consumption tax on American buyers and altered export quantities more than prices.
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