Study Reveals Americans Pay 96% of Trump’s Tariffs
A recent study conducted by the Kiel Institute for the World Economy reveals that American consumers bear almost all the financial burden of tariffs imposed by the Trump administration. Specifically, the research indicates that 96% of tariff costs are passed on to consumers in the United States, contradicting claims that foreign nations would cover these expenses.
Absurd Trade Claims and Reality
When President Donald Trump introduced tariffs during his “Liberation Day” announcement in April 2025, he asserted that the U.S. had been unfairly treated by other nations. However, the latest findings suggest that American shoppers are shouldering the financial impact, rather than foreign countries.
Recent Developments in Tariff Policy
As of December 2025, Trump has escalated tensions with several European nations, including Denmark, Norway, Sweden, France, and Germany. As part of renewed trade measures, a 10% tariff will be applied beginning February 1, which could increase to 25% if negotiations for purchasing Greenland do not progress.
Additionally, Trump has threatened a staggering 200% tariff on French wine following disputes with French President Emmanuel Macron regarding international diplomacy concerning Gaza. These tariffs represent Trump’s broader strategy of using trade as leverage in geopolitical conflicts.
Study Details and Findings
The research involved a comprehensive analysis of over 25 million shipment records spanning from January 2024 to November 2025, valued at nearly $4 trillion. The key findings include:
- Export prices to the U.S. have remained stable, yet the overall volume of trade has diminished significantly.
- After a 50% tariff on India was implemented, exports to the United States dropped by up to 24%.
- Exporters are diverting goods to other markets to avoid damaging their sales and pricing.
Julian Hinz, the research director at the Kiel Institute, stated, “There is no such thing as foreigners transferring wealth to the U.S. in the form of tariffs.” Only 4% of tariff costs were absorbed by exporters, while the majority have been passed onto American consumers, significantly elevating costs.
Economic Impact and Future Outlook
Despite claims that tariffs would reinvigorate American manufacturing, the reality paints a starkly different picture. Since the introduction of the tariffs, the United States has lost 60,000 manufacturing jobs between April and November 2025. Economists are skeptical regarding the Trump administration’s ability to sustain tariff measures, particularly as the Supreme Court prepares to review the legality of such policies.
In summary, this research reveals that tariffs designed to protect American interests are predominantly financed by American consumers, challenging the long-held assertion that foreign governments bear the costs. As the situation develops, the economic implications for U.S. households remain significant.
