Americans Pay Almost Entirely for Trump’s Tariffs

Recent research from the Kiel Institute for the World Economy indicates that American consumers and importers paid approximately 96% of the costs from U.S. tariffs, with foreign exporters absorbing only about 4%, effectively making tariffs a consumption tax on Americans rather than a tax on foreign producers, driving U.S. inflation. The study analyzed $4 trillion in trade and found that instead of lowering prices, foreign firms reduced trade volumes, passing costs onto U.S. buyers who faced higher prices or tighter margins.

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