Trump's Tariffs Are Paid Almost Entirely by Americans: German Study

Business Insider • January 20, 2026 • business

Key Points:

A study by the Kiel Institute for the World Economy found that 96% of US tariffs are paid by American importers and consumers, contradicting President Trump's claim that other countries would bear the cost.
The research showed that the $200 billion increase in US customs revenue in 2025 was essentially a tax paid almost entirely by Americans.
The study analyzed over 25 million shipment records from 2024 to 2025, revealing a near-complete pass-through of tariffs to US import prices, which rise almost one-for-one with tariffs while trade volumes decline.
American importers, wholesalers, manufacturers, retailers, and ultimately consumers face higher costs and reduced availability of goods due to tariffs.
Despite these findings,