Trump tariffs: 96% of the cost falls on US buyers, according to study

Washington. – The tariffs implemented during the administration of former President Donald Trump generated a significant economic impact for the United States, transferring more than USD 200,000 million in costs to companies and consumers, according to a study by the Kiel Institute for the World Economy, in Germany. According to the report, nearly 96% of the cost of the tariffs was borne by American importers, companies, and households, while only 4% fell on foreign exporters. The study indicates that international suppliers did not significantly reduce their prices to offset the new levies. Researchers explain that the tariffs were paid directly by importing companies in the United States, which faced the dilemma of absorbing the costs by reducing their profit margins or passing them on to consumers by raising prices.

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"The USD 200 billion increase in customs revenue represents extra resources extracted directly from American companies and households," the report highlights, underlining the real effect of protectionist measures on the country's domestic economy. The study provides new elements to the debate on the effectiveness of tariffs as a trade policy tool and their consequences for competitiveness, inflation, and the purchasing power of consumers in the United States.