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Americans are paying Trump's tariffs: Kiel Institute report
Kiel Institute Research Director Julian Hinz described the tariffs as an 'Own Goal' by America.
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Jeffin T. Kaleekal - Wed, 21, Jan 2026
- 03:48 EST
- 26
Representative image / Pexels
American consumers and importers are bearing 96 percent of the brunt of President Donald Trump's tariff policy, claimed a report by Kiel Institute for the World Economy after studying the consequences of the 50 percent tariff imposed on India.
The Trump administration has imposed significant tariff barriers on countries that do not comply with it's geopolitical views and ambitions with the declared objective of impairing the other country's economy and simultaneously boosting American manufacturing.
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However, the new study claims that Americans are bearing the cost of Trump's tariffs, with Kiel Institute Research Director, Julian Hinz, declaring the tariffs as "an own goal."
Hinz added, "The claim that foreign countries pay these tariffs is a myth. The data show the opposite: Americans are footing the bill."
The research team analyzed records of over 25 million shipments, worth over $4 trillion and noted that foreign exporters absorbed only about four percent of the tariff burden, 96 percent of the burden was passed to US buyers. This endeavour, however, has been hugely profitable to U.S. customs department, with a revenue increase of $200 billion in 2025.
"We compared Indian exports to the US with shipments to Europe and Canada and identified a clear pattern," Hinz explained.
According to Hinz, "Both export value and volume to the US dropped sharply, by up to 24 percent. But unit prices—the prices Indian exporters charged—remained unchanged. They shipped less, not cheaper."
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