BERLIN, Jan. 19 (Xinhua) -- The costs generated by U.S. tariffs are borne almost entirely by American importers and consumers rather than foreign exporters, a German study found on Monday, challenging claims by the U.S. administration that the burden falls overseas.
The study, based on more than 25 million U.S. import shipment records with a total value of roughly 4 trillion U.S. dollars, found that U.S. customs revenues rose by about 200 billion U.S. dollars in 2025. However, foreign exporters absorbed only around 4 percent of the tariff burden, while the remaining 96 percent was passed on to U.S. buyers, according to the Kiel Institute for the World Economy (IfW).
"The tariffs are an own goal," said Julian Hinz, head of trade policy research at the IfW. "The claim that foreign countries pay these tariffs is a myth. The data show the opposite: Americans are footing the bill."
The study found that exporters did not lower prices to offset the higher tariffs.
Hinz said tariffs effectively function as a consumption tax on imported goods, with the costs ultimately absorbed within the United States, while also reducing both the variety and volume of products available on the U.S. market.
The findings come as U.S. President Donald Trump escalated trade tensions over the weekend in a dispute involving Greenland, announcing that from Feb. 1, Washington would impose an additional 10 percent tariff on imports from eight European countries, including Germany.
The IfW warned that higher tariffs would have negative long-term effects on all sides, squeezing profit margins for U.S. businesses and driving up prices for consumers, while exporters to the United States would see declining sales and increasing pressure to seek alternative markets.
(Editor: fubo )

