"The brunt of US tariffs - 96% - have been paid by US buyers, research from the Kiel Institute for the World Economy, a German think tank, found, while about 4% of the tariff burden was paid by foreign exporters. "American importers and consumers bear nearly all the cost," the researchers said of the tariffs. The study, published Monday, said that the $200 billion increase in customs revenue that the US government raised in 2025 was a "tax paid almost entirely by Americans.""
"The Kiel Institute study examined more than 25 million shipment records, worth nearly $4 trillion, between January 2024 and November 2025. The researchers found that there was a "near-complete pass-through" of the tariffs. "US import prices rise nearly one-for-one with tariffs, while trade volumes contract," the study said. The findings echo other research that has found Americans are paying for tariffs, including from Harvard Business School and The Budget Lab at Yale."
US tariffs have been borne overwhelmingly by American importers, wholesalers, manufacturers, retailers, and consumers, with roughly 96% of costs domestic and about 4% absorbed by foreign exporters. A $200 billion increase in customs revenue in 2025 functioned as a tax paid almost entirely by Americans. Import prices increased nearly one-for-one with tariff changes, and trade volumes contracted. Data cover more than 25 million shipment records worth nearly $4 trillion between January 2024 and November 2025. Importers and wholesalers are hit first, followed by manufacturers and retailers, which must choose to absorb tariffs or pass costs to customers. Multiple prior analyses reach similar conclusions.
Read at Business Insider
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