Trump's Tariff Policy: Americans Are Paying!

Customs Duties Paid by Americans

A new study conducted by the Kiel Institute reveals that the main cost of the customs tariffs implemented during the Trump administration has been borne by the American public. The research indicates that U.S. consumers and businesses have incurred additional liabilities due to these tariffs.

Foreign Exporters Are Not Lowering Prices

The report emphasizes that foreign exporters have not significantly reduced their prices despite the increase in U.S. tariffs. In particular, the fact that U.S. customs revenues have reached $200 billion directly impacts American households and businesses.

Who Bears the Burden of Customs Duties?

The study shows that only 4% of the customs duty burden is covered by foreign companies; the remaining 96% is paid by U.S. consumers and importers. The researchers, Julian Hinz, Aaron Lohmann, Hendrik Mahlkow, and Anna Vorwig, note that the tariffs function as a consumption tax.

Examples from Brazil and India

The research provides examples from Brazil and India, which are subject to high U.S. customs duties. Exporters in Brazil did not significantly lower their prices in dollar terms after a 50% tax. A similar situation has been observed in India, where the tax was initially 25% and later raised to 50%.

Conclusions

Based on shipment data covering approximately 4 trillion dollars worth of 25 million transactions, the Kiel study refutes the claim that the tariffs are paid by trading partners. The researchers have stated that nearly all of the costs are borne by American importers and consumers.