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New research shows U.S. consumers and businesses—not foreign exporters—are paying almost the entire cost of tariffs. A study of $4 trillion in trade found that foreigners absorbed just 4% of the burden, while Americans paid 96% through higher prices and costs.The findings contradict President Trump’s claim that tariffs are paid by other countries. Instead, tariffs act like a tax on U.S. consumption and are likely to push inflation higher over time.While European exporters have been hurt by reduced trade volumes, the economic cost inside the U.S. has been far larger. Economists warn that if tariffs rise further, the financial burden on American households will grow.
 

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