Tuesday, January 20, 2026- New research has delivered a stark wake-up call to U.S. households and businesses: Americans are shouldering nearly all of the cost of recent tariffs, not foreign producers as government officials have repeatedly claimed. A comprehensive study analyzing shipment-level trade data worth nearly $4 trillion found that 96% of the tariff burden is passed through to American importers, wholesalers, and consumers, with foreign exporters absorbing only a small fraction by slightly lowering prices. The result is clear—higher costs are landing squarely in the U.S. economy, not overseas.
The impact is already being felt and is growing more urgent. The U.S. government collected roughly $200 billion in additional customs revenue in 2025, but economists warn this revenue effectively acts as a hidden tax on American consumption. Prices rise, purchasing power weakens, and businesses that rely on imported components face tighter margins. Rather than discounting goods, many foreign suppliers are shipping less, increasing supply pressure and driving further cost increases across U.S. supply chains.
For consumers and small businesses, the message is unavoidable: tariffs are not paid by foreign countries. The data shows that American buyers are footing the bill through higher prices and reduced choices. As new tariffs are debated and expanded, households should expect continued price pressure, while companies must reassess sourcing and pricing strategies to stay competitive. The evidence is in—and it points directly to American wallets.
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