Almost all the added costs from Trump's tariffs are being pushed on Americans, study finds

Source: The Independent

Monday 19 January 2026 14:25 EST


The people paying for "nearly all" of President Donald Trump’s tariffs are American consumers, according to a new report from a German analyst group.

A report, released on Monday by the Kiel Institute for the World Economy, determined that "foreign exporters did not meaningfully reduce their prices in response to US tariff increases." "The $200 billion surge in customs revenue represents $200 billion extracted from American businesses and households," the report said.

The study determined that only approximately 4 percent of the financial burden created by the tariffs is being paid by foreign operators. The other 96 percent has effectively become "a consumption tax on Americans," according to Kiel's researchers.

American importers have to decide whether or not they'll pay the increased prices themselves or pass them along to manufacturers and retailers. If they choose the latter, then the manufacturers and retailers have to make the same decision — absorb the cost, or pass it along to consumers.

Read more: https://www.the-independent.com/news/world/americas/us-politics/trump-tariffs-americans-pay-study-b2903467.html