Study shows that U.S. citizens pay 96% of tariffs: “tax paid almost entirely by Americans”
It turns out that US citizens are indeed paying the price of Donald Trump’s tariffs.
Who knew? Donald Trump’s magical tariffs are actually making life more expensive for the American people as the world raises their economic defences amid a US-led escalation of tensions.
A new economic analysis has delivered a the news on Mr Trump’s longstanding claims about just who bears the cost of U.S. tariffs. While he does his best to claim that the tariffs make products cheaper for people, they in fact are working as the key factor behind the biggest broken promise of his presidency. Apart from the promise not to start any international conflicts. And apart from the promise he made about ending the violence in Ukraine. And the promise about releasing the Epstein files.
According to a report published this week by the Kiel Institute for the World Economy, a respected German think tank, nearly all of the financial burden from recent U.S. tariff hikes falls on American importers, businesses and consumers, not on foreign producers as the Trump administration has repeatedly suggested.
BREAKING: French President Emmanuel Macron just completely tortured Donald Trump at the world economic forum:
— Ed Krassenstein (@EdKrassen) January 20, 2026
“Examples of international bullies… when we look at the situation, it's clearly a very concerning time… combined with an endless accumulation of new tariffs that are… pic.twitter.com/0bZGzGXjrp
The study, titled America’s Own Goal: Who Pays the Tariffs?, analysed more than 25 million shipment records valued at almost $4 trillion, spanning January 2024 through November 2025.
It found that exporters outside the United States absorbed only about 4 per cent of the additional costs generated by new duties.
If you do the maths, that means that the remaining 96 per cent was effectively passed through to U.S. buyers in the form of higher prices, reduced supply, or other cost increases.
The authors said that the idea of foreign countries absorbing the cost of U.S. tariffs does not align with the data, which instead shows that the levies act much like a domestic consumption tax. “There is no such thing as foreigners transferring wealth to the U.S. in the form of tariffs,” Julian Hinz, an economics professor at Germany’s Bielefeld University who co-authored the study, told media outlets.
Arctic security can only be achieved together.
— Ursula von der Leyen (@vonderleyen) January 20, 2026
This is why the proposed additional tariffs are a mistake, especially between long-standing allies.
The EU and US have agreed to a trade deal last July.
A deal is a deal.
And when friends shake hands, it must mean something. pic.twitter.com/5wpMic148s
Related stories
Despite what the orange-faced ex-reality TV star will tell you through his mouth that looks like the exit of a sauce bottle from a 1960s diner, U.S. customs revenues rose by roughly $200 billion in 2025 as a result of tariff enforcement, but the report emphasised that this revenue surge essentially reflects money extracted from American households and firms.
Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.
Complete your personal details to comment