Report: Americans, Not Foreign Countries, Pay Nearly All Trump Tariffs

• A new report by the Kiel Institute for the World Economy finds that Americans bear almost the entire cost of Trump's 2025 tariffs.
• The study, "America’s Own Goal: Who Pays the Tariffs?", reveals 96% of the tariff burden is passed to US buyers, with foreign exporters absorbing only 4%.
• Analysis of 25 million transactions worth $4 trillion shows near-complete pass-through of tariffs to US import prices, increasing costs for American businesses and households.
• Foreign exporters largely did not cut prices; instead, trade volumes declined, leading to supply-chain disruptions and fewer consumer choices.
• The report concludes that tariffs act as a selective consumption tax on Americans, transferring wealth to the US Treasury, rather than making foreign countries pay.

Why It Matters: Trump's 2025 tariffs are primarily paid by American consumers and businesses, not foreign exporters, acting as a domestic tax.