The Wall Street Journal gave front-page coverage to this new study, which concludes that American consumers are paying for Trump’s tariffs. This is a direct refutation of Trump’s claims that other nations are paying to access American markets, that the trillions collected for tariffs will eventually replace income taxes and pay for all the government’s expenses.

Guess who is paying for tariffs? We are!

FRANKFURT—Americans, not foreigners, are bearing almost the entire cost of U.S. tariffs, according to new research that contradicts a key claim by President Trump and suggests he might have a weaker hand in a reemerging trade war with Europe.

Trump has repeatedly claimed that his historic tariffs, deployed aggressively over the past year as both a revenue-raising and foreign-policy tool, will be paid for by foreigners. Such assertions helped to reinforce the president’s bargaining power and encourage foreign governments to do deals with the U.S.

A relatively brisk growth and moderate inflation last year, even as growth in Europe and other advanced economies remained sluggish.

The new research, published Monday by the Kiel Institute for the World Economy, a well-regarded German think tank, suggests that the impact of tariffs is likely to show up over time in the form of higher U.S. consumer prices.

The findings don’t mean that the tariffs are a win for Europe—on the contrary. German exports to the U.S., which have rocketed in recent years, have contracted sharply in the past year.

The German research echoes recent reports by the Budget Lab at Yale and economists at Harvard Business School, finding that only a small fraction of the tariff costs were being borne by foreign producers.

By analyzing $4 trillion of shipments between January 2024 and November 2025, the Kiel Institute researchers found that foreign exporters absorbed only about 4% of the qpart burden of last year’s U.S. tariff increases by lowering their prices, while American consumers and importers absorbed 96%.