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America's own goal: US citizens pay almost entirely for Trump’s tariffs, study finds (www.kielinstitut.de)

submitted 7 months ago by Sepia@mander.xyz to c/economy@lemmy.world

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Here is the study download: Americaʼs Own Goal: Who Pays the Tariffs? - (pdf)

Contrary to US government rhetoric, the cost of US import tariffs are not borne by foreign exporters. Instead, they hit the American economy itself. Foreign exporters absorb only about 4% of the tariff burden—the remaining 96% is passed through to US buyers.
Using shipment-level data covering over 25 million transactions valued at nearly $4 trillion, we find near-complete pass-through of tariffs to US import prices.
US customs revenue surged by approximately $200 billion in 2025—a tax paid almost entirely by Americans.
Event studies around discrete tariff shocks on Brazil (50%) and India (25–50%) confirm: export prices did not decline. Trade volumes collapsed instead.
Indian export customs data validates our findings: when facing US tariffs, Indian exporters maintained their prices and reduced shipments. They did not “eat” the tariff.

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[–] Peereboominc@piefed.social 3 points 7 months ago

Yes, exactly.

Another option would be to lower the quality by using cheaper materials or downsize the product (10 % less candy in a bag for the same price)