A new study from the Kiel Institute for the World Economy reveals that the recent tariffs imposed by the United States are primarily impacting American consumers and businesses rather than foreign exporters. The study highlights an alarming trend: this research sheds light on the economic implications of these tariffs, suggesting a significant shift in the burden of costs.
Study Overview
The study, which analyzed shipment-level trade data from over 25 million transactions worth nearly $4 trillion, found that a staggering 96% of the tariff burden is being passed on to US buyers. In contrast, foreign exporters are only absorbing about 4% of the costs, challenging the common belief that they would bear the brunt of the tariffs.
Impact on the US Economy
As import prices rise almost in direct correlation with the tariffs, the report highlights potential long-term consequences for the US economy. These include:
- disrupted supply chains
- a reduction in consumer choice
indicating that the tariffs may represent a self-inflicted economic setback rather than a strategic advantage in trade negotiations. The findings call for a reevaluation of the current tariff strategy and its broader implications for American consumers.
The recent study highlights the burden of tariffs on American consumers, while the US government has reported a record $264 billion in tariff revenue for 2025, reflecting a significant increase. For more details, see more.
