U.S. Tariffs Fall Heaviest on Domestic Consumers, Study Shows
American households and businesses absorbed 96% of costs from recent U.S. tariffs, according to a Kiel Institute study tracking $4 trillion in global trade flows. The research reveals how protectionist policies ricochet through supply chains, with foreign suppliers absorbing just 4% of the financial impact through minor price adjustments.
Trade patterns reconfigured sharply as tariffs took effect, but the data shows overseas firms prioritized margin preservation over competitive pricing. This left U.S. importers bearing the brunt of increased costs—a dynamic that could Ripple through consumer inflation metrics in coming quarters.