Study finds Americans foot the bill for Trump's tariffs

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People pay for ‘almost everything’ the president does donald trump tariff According to a new report from a German analysis group, they are American consumers.

one Report“Foreign exporters have not significantly reduced prices in response to higher U.S. tariffs,” said a report released Monday by the Kiel Institute for the World Economy.

“A $200 billion surge in customs revenue represents a $200 billion squeeze from American businesses and households,” the report said.

The study determined that only about 4% of the financial burden caused by tariffs is paid by businesses. foreign operator. The remaining 96% have actually become “Impose a sales tax on Americans” According to researchers in Kiel.

U.S. importers must decide whether to pay the increased prices themselves or pass them on to manufacturers and retailers. If they choose the latter, manufacturers and retailers must make the same decision – absorb the costs, or pass them on to consumers.

The study cites Brazil and India – B and I respectively BRICS group — Under Trump’s policy, exports from both countries are subject to 50% tariffs. Brazilian exporters “did not significantly reduce dollar prices” and India responded similarly, the report said.

President Donald Trump explained his tariff policy in his April 2025 “Liberation Day” statement. Despite claims that foreign exporters are paying tariffs, a recent study determined that “nearly all” tariffs are being paid by U.S. importers, who are likely to pass these costs all the way to U.S. consumers (AFP/Getty)

The institute found that in Brazil and India, exporters chose to reduce export volumes rather than reduce prices.

Kiel concluded that the Trump administration was wrong to argue that foreign trading partners were paying the price from tariffs.

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“This assertion is central to the policy’s rationale: Tariffs are viewed as a tool designed to extract concessions from trading partners while generating revenue for the U.S. government at no cost to American households,” the report said. “Our research shows the opposite: U.S. importers and consumers bear nearly all of the costs.”

Trump doesn’t appear to be relaxing his tariff strategy anytime soon. Earlier this week, Trump threatened to Trade war with Europe The president insists Greenland is vital to national security if Denmark does not allow the United States to take control of Greenland.

Saturday, Trump threaten to impose A 10% tariff was imposed on European countries in February and a further 25% tariff on European countries in June until his demands were met.

European leaders are expected to hold an emergency meeting in Brussels on Thursday to discuss the threat and possible counter-tariffs against the United States, which could further raise prices for Americans already in an affordability crisis.