Trump’s tariffs hurt Americans more than China.
By Maxime Laurent · 2026-01-20 07:46
Trump’s tariffs hurt Americans more than China.
A study shows 96% of US tariffs are paid by Americans, turning trade barriers into a hidden domestic tax.
For years, the story was simple: slap tariffs on imports, punish China, protect America. Sounds strong. Looks patriotic. But reality, as usual, is less cinematic. According to research from the Kiel Institute for the World Economy, 96% of US trade tariffs are actually paid by Americans themselves — companies first, consumers right after. Foreign exporters? Only about 4% of the pain.
In practice, tariffs work like a sneaky internal tax. Imports get more expensive, businesses pass costs down the line, shelves get pricier. Overseas companies don’t heroically slash prices — they reroute supply chains or just sell elsewhere. Simple economics, zero drama.
The final bill is heavy: nearly $200 billion in tariff revenues, absorbed by the United States domestic economy. Not Beijing. Not “external enemies”. Just households and firms paying more, quietly.
This is why markets rarely clap for tariffs. They distort, they hide costs, and they sell a narrative that feels good until you check your receipt. Politics loves symbols. Economics loves balance sheets. Et voilà. 🧾⚖️
#Economy #Trade #Tariffs #USA #Inflation #Macro #Politics #CryptoFriture
A study shows 96% of US tariffs are paid by Americans, turning trade barriers into a hidden domestic tax.
For years, the story was simple: slap tariffs on imports, punish China, protect America. Sounds strong. Looks patriotic. But reality, as usual, is less cinematic. According to research from the Kiel Institute for the World Economy, 96% of US trade tariffs are actually paid by Americans themselves — companies first, consumers right after. Foreign exporters? Only about 4% of the pain.
In practice, tariffs work like a sneaky internal tax. Imports get more expensive, businesses pass costs down the line, shelves get pricier. Overseas companies don’t heroically slash prices — they reroute supply chains or just sell elsewhere. Simple economics, zero drama.
The final bill is heavy: nearly $200 billion in tariff revenues, absorbed by the United States domestic economy. Not Beijing. Not “external enemies”. Just households and firms paying more, quietly.
This is why markets rarely clap for tariffs. They distort, they hide costs, and they sell a narrative that feels good until you check your receipt. Politics loves symbols. Economics loves balance sheets. Et voilà. 🧾⚖️
#Economy #Trade #Tariffs #USA #Inflation #Macro #Politics #CryptoFriture
Disclaimer: This content is for informational purposes only and not financial advice.