Cost of Trump Tariff Largely Borne by Americans

(MENAFN) Americans are shouldering nearly the entire financial burden of tariffs enacted by US President Donald Trump, with a staggering 96% of costs transferred directly to domestic importers and consumers, according to findings released Monday by a German research institution.

"Contrary to US government rhetoric, the cost of US import tariffs are not borne by foreign exporters," the Kiel Institute for World Economy—an independent nonprofit organization—stated in its report.

The analysis projects US tariff revenue will surge by roughly $200 billion through 2025, with foreign exporters absorbing merely 4% of the financial impact while 96% falls on American importers and consumers, the institute found.

Last month Trump told reporters at the White House: "Because of the tariffs, we've taken in more than 18 – think of this – more than $18 trillion. There's never been anything like it." Speaking at the Detroit Economic Club last week, he claimed the tariffs had "helped curb inflation."

However, the research emphasized that while the administration's stated goal targets foreign corporations through tariffs, the strategy is inflicting damage on America's domestic economy.

The tariffs function similarly to a consumption tax on imported goods, resulting in reduced product diversity and availability in the marketplace, according to the findings.

Long-term consequences include compressed profit margins for US businesses, elevated consumer prices, and diminished sales for countries exporting to America, forcing them to pursue alternative markets, the report warned.

"The tariffs are an own goal," said Julian Hinz, Kiel's research director. "The claim that foreign countries pay these tariffs is a myth. The data show the opposite: Americans are footing the bill."

The comprehensive study examined over 25 million shipment records representing approximately $4 trillion in total value.

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