German Institute: U.S. Tariffs Harm the Economy
The Germany-based Kiel Institute for the World Economy announced that the tariffs imposed by U.S. President Donald Trump are largely being paid by Americans themselves.
In its report titled “America’s Own Goal: Who Pays the Tariffs?”, the institute stated that 96% of the tariff burden falls on U.S. importers and consumers.
The report analyzed more than 25 million shipment records with a total value of approximately $4 trillion. The findings revealed that, contrary to the U.S. government’s claims, the costs of tariffs are not borne by foreign exporters but directly impact the American economy.
Revenue and Burden Distribution
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U.S. customs revenue increased by about $200 billion in 2025.
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Foreign exporters absorbed only around 4% of the tariff burden, while 96% was passed on to U.S. importers and consumers.
Economic Impact
The report emphasized that although the U.S. administration aimed to target foreign companies with tariffs, the policy has actually harmed the domestic economy.
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Tariffs function like a consumption tax on imported goods.
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This has led to a decline in product variety and quantity in the market.
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In the long run, U.S. companies are expected to face shrinking profit margins, while consumers will encounter higher prices.
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Exporting countries to the U.S. will sell less and face pressure to find new markets.
