"Americans are paying 96% of the costs of tariffs as prices for goods rise, according to research published Monday by the Kiel Institute for the World Economy, a German think tank. In April 2025 when President Donald Trump announced his "Liberation Day" tariffs, he claimed: "For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike.""
"Trump has long used tariffs as leverage in non-trade political disputes. Over the weekend, Trump renewed his trade war in Europe after Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland sent troops for training exercises in Greenland. The countries will be hit with a 10% tariff starting on Feb. 1 that is set to rise to 25% on June 1, if a deal for the U.S. to buy Greenland is not reached."
"The research shows export prices stayed the same, but the volume has collapsed. After imposing a 50% tariff on India in August, exports to the U.S. dropped 18% to 24%, compared to the European Union, Canada, and Australia. Exporters are redirecting sales to other markets, so they don't need to cut sales or prices, according to the study."
Americans pay 96% of tariff costs as prices for goods rise. President Donald Trump announced "Liberation Day" tariffs in April 2025 and has used tariffs as leverage in non-trade political disputes. The U.S. imposed tariffs on several European countries tied to Greenland training exercises and threatened a 200% tariff on French wine. Export prices largely remained unchanged while export volumes collapsed. After a 50% tariff on India, exports to the U.S. fell 18–24% versus other markets. Exporters redirected sales to other markets rather than cutting prices. Tariffs raised costs for American consumers and did not transfer wealth to foreigners.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]