US Consumers Bore the Brunt of Tariffs on India and Brazil, Report Reveals

A report by the Kiel Institute has revealed that the tariffs of up to 50% imposed by Trump on India and Brazil have not affected foreign exporters. According to the study, 96% of the burden of this hefty tax of $200 billion has been borne by American importers and general consumers.

Donald Trump Tariffs 2026: A study by a German think tank has stated that the tariffs imposed by US President Donald Trump on imported goods are being paid almost entirely by American importers, their domestic customers, and ultimately, American consumers.

A report released on Monday by the Kiel Institute for the World Economy stated that foreign exporters have not significantly reduced their prices in response to the increase in US tariffs. Furthermore, the $200 billion increase in US customs revenue reflects $200 billion collected from American companies and families.

The study, which focused on Brazil and India, found that foreign companies bore only about 4% of the tariff burden, while 96% of the burden fell entirely on American buyers. These buyers either had to bear the cost themselves or increase their selling prices. Researchers at the Kiel Institute, Julian Hinz, Aaron Lohmann, Hendrik Mahlkow, and Anna Vörwig, wrote, "This tariff acts not as a tax on foreign producers, but as a consumption tax on Americans."

Exporters have found new markets

The study found that after a 50% tariff was imposed, Brazilian exporters did not significantly reduce their dollar prices. The same was observed in the case of India, where a 25% tariff was initially imposed, which was later increased to 50% after a few weeks. According to the study, there are several reasons why exporters do not bear most of the cost, including their ability to redirect sales to other markets.