The introduction of sweeping US tariffs has been a major topic of discussion in recent years. On April 2 last year, the Trump administration declared "Liberation Day", which marked the start of large import tariffs: 10% on most imported goods, 50% for certain countries, and even 145% for China.
The rationale was straightforward — make the US economy more self-sufficient, boost domestic manufacturing, and bring back jobs. However, research by the Kiel Institute for the World Economy in Germany showed that only 4% of the tariff burden was actually paid by foreign exporters; the remaining 96% was absorbed by American importers, companies, and consumers. In 2025, this amounted to around $200 billion paid almost entirely by Americans.
There have been few alternatives for domestic production, so tariffs did not have the expected effect. Research from Harvard Business School found that from March to September 2025, prices of imported goods increased by 4%, while domestic goods saw a 2% rise. Businesses initially tried to absorb extra costs but later passed them on to consumers.
Notably, tariffs did not lead to job growth: over seven months from April to November, US manufacturing lost about 59,000 jobs. Exporters from India and Brazil did not cut prices but turned to other markets, while the US market saw reduced supply and rising prices.
The legal aspect also remains unresolved: the US Supreme Court has yet to decide on the legality of using an old economic law for imposing tariffs. If ruled against, tariffs may be canceled and funds returned to foreign companies.
In summary, the bulk of new tariffs has been paid by US consumers and companies, impacting prices, inflation, and industrial employment.
