Study finds 96% of U.S. tariff costs fall on American consumers and importers

Between early 2024 and late 2025, Germany's Kiel Institute for the World Economy analyzed about $4 trillion in shipments and, on January 20, 2026, reported that 96% of U.S. tariff costs were borne domestically. Foreign suppliers absorbed roughly 4% through minor price cuts, while higher import fees were passed along to businesses and households.