“Tariffs imposed by the Trump administration are paid by foreign countries.”

“For an explanation on the reciprocal tariff calculations, see here. For President Trump's America First Trade Policy and Reciprocal Trade and Tariffs ...”

“Tariffs will continue to be a critical tool in President Trump’s toolbox for protecting American businesses and workers, reshoring domestic production, lowering costs, and raising wages. ... As a result of the President’s tariffs, major U.S. trading partners covering more than half of global GDP have agreed to historic trade and investment deals to open new markets for U.S. exports, promote manufacturing reshoring, and bring reciprocity and balance to our trade relations.”

“The Supreme Court’s 6-3 decision invalidating President Trump’s use of tariffs under the 1977 International Emergency Economic Powers Act (IEEPA) adds uncertainty to the tariff fiscal projections, yet does not alter them substantially. The recent Congressional Budget Office (CBO) baseline estimated that continuing the IEEPA and other recent tariffs would raise $2.4 trillion over the decade, or $3.0 trillion including other effects such as resulting net interest savings. This figure is smaller than the gross increase in customs revenues because tariffs produce offsetting losses in other revenue categories, such as when businesses deduct the cost of tariffs paid.”

“Recent data shows the US current account deficit is continuing to rise as a share of GDP—even though the much-watched bilateral trade deficit with China has fallen. Imports coming from China have simply reappeared as imports from other countries, which, to little surprise, have imported more from China. As a result, it is impossible for the United States to permanently reduce its external imbalance unless it persistently raises its domestic savings rate and reduces its dependency on foreign capital inflows.”

“Importers and consumers in the US bear 96 percent of the tariff burden, according to new research from the Kiel Institute for the World Economy. "The claim that foreign countries pay these tariffs is a myth. The data show the opposite: Americans are footing the bill." Foreign exporters absorbed only about four percent of the tariff burden, 96 percent passed through to US buyers.”

“President Trump also stated that the EU and Mexico could both see rates rise to 30%. This could take the total effective tariff rate close to 17% — excluding ...”

“The Trump administration has embarked on a novel and aggressive tariff policy to address a range of economic and national security concerns.”

“President Donald Trump has repeatedly and erroneously claimed that foreign governments are paying the entirety of his tariffs... U.S. companies... shifted most of the responsibility of paying tariffs onto American consumers through higher prices.”

“Research by Harvard University's Gita Gopinath and University of Chicago Booth School of Business Prof. Brent Neiman offers an early empirical view on what tariffs are actually doing to the U.S. economy. They found that U.S. buyers—not foreign governments or offshore suppliers—are picking up nearly all the cost. The researchers studied trade data from the U.S. census and find, instead, that 94% of the tariffs were passed along to U.S. buyers in 2025.”

“President Trump routinely claims that foreigners pay his tariffs, which is false—U.S. importers pay them. Over time, however, foreign exporters can be expected to bear a small but rising burden of the tariffs through price cuts, while most of the cost will be borne by U.S. consumers in the form of higher prices. Projecting forward to the middle of 2026, we can now expect importers to bear only about 8% of the tariff costs, exporters about 25%, and consumers 67%.”

“In 2025, the Trump tariffs amounted to an average tax increase per US household of $1,000. After the IEEPA tariffs were struck down, we estimate the President's remaining new tariffs under Section 232 will increase taxes per US household by $400 in 2026. Historical evidence and recent studies show that tariffs are taxes that raise prices and reduce available quantities of goods and services for US businesses and consumers, resulting in lower income, reduced employment, and lower economic output.”

“A new analysis breaking down the passthrough of tariff costs finds that U.S. businesses and consumers are shouldering the majority of the cost at this point, rather than foreign exporters. Goldman Sachs economists estimated that as of August, U.S. businesses were absorbing a net 51% of tariff costs, while American consumers were shouldering 37% of the burden. By the end of 2025, U.S. consumers will be absorbing 55% of tariff costs, while 22% will fall on U.S. businesses, 18% on foreign exporters and 5% on potential tariff evasion.”