By: Ebenezer Adu-Gyamfi / Emmanuel Ayiku for GhanaianNewsCanada 20/1/2026
A new economic study has found that American importers, businesses and consumers are shouldering nearly all the burden of the tariffs imposed by U.S. President Donald Trump, directly contradicting repeated claims that foreign exporters pay most of the cost.
The research, conducted by the Kiel Institute for the World Economy, analyzed more than 25 million U.S. import shipments worth almost $4 trillion between January 2024 and November 2025. It found that foreign exporters absorb only about 4% of the tariff burden meaning roughly 96% of the costs are passed on to buyers in the United States.
According to the report’s authors, this happens because most foreign suppliers do not reduce their prices in response to tariffs. Instead, American importers and retailers either absorb the costs or raise prices, which ultimately affects U.S. consumers. As a result, the tariffs act more like a consumption tax on Americans rather than a tax on foreign producers.
The research also showed that although the U.S. collected an estimated $200 billion in tariff revenue in 2025, that money represents amounts paid almost entirely by American companies and households through higher import prices.
In addition, the study found that trade volumes dropped sharply in response to tariff increases for example, U.S. tariffs on Indian goods were associated with a 18–24% decline in Indian exports to the United States, even though export prices did not fall.
Economists say these findings undermine the narrative that other countries pay for U.S. tariffs and suggest that the real economic cost is being borne domestically. The research also echoes similar results from previous academic and financial institution analyses.
