Trump Tariffs Cost Americans, according to a new study by the Kiel Institute for the World Economy. Researchers found that Americans paid nearly all revenue from last year’s tariff hikes. US consumers and importers absorbed about 96 percent of added costs. Foreign exporters paid only four percent.
Moreover, the findings challenge President Donald Trump’s claim that overseas producers bear the burden. They also suggest Washington holds less trade leverage than expected. Although the US economy performed strongly last year, the study shows delayed financial impacts.
Researchers tracked nearly four trillion dollars in global shipments from early 2024 to late 2025. They found little evidence of price cuts by foreign exporters. Instead, US businesses passed higher costs along supply chains. As a result, trade volumes declined.
For example, Indian exporters reduced shipments to the US by up to 25 percent. However, they kept prices stable. This trend led to reduced trade rather than cheaper imports.
Furthermore, the report concluded that tariffs act like a domestic consumption tax. Co-author Julian Hinz said Americans paid almost all of the 200 billion dollars collected. Over time, this burden could push inflation higher.
Studies from Yale and Harvard also support these conclusions.
