Trump’s Tariffs Are Raising Costs for U.S. Consumers

When tariffs are imposed on imported goods, someone has to foot the bill.

A growing body of evidence — including economic data, academic research, business expenses, and consumers’ firsthand experiences — shows that U.S. firms and households are shouldering the higher costs.

According to President Donald Trump, foreign countries and overseas businesses are bearing the cost.

But evidence shows that American consumers and businesses are paying for the tariffs his administration has implemented as its primary policy tool, CNN Business’ Alicia Wallace reported.

“It [has] been proven that even at this late stage, Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers,” Trump posted on his social media platform Truth Social earlier this month.

“Also, it has been shown that, for the most part, Consumers aren’t even paying these Tariffs, it is mostly Companies and Governments, many of them Foreign, picking up the tabs.”

Trump’s claim is incorrect. A growing body of evidence — including economic data, academic research, business expenses, and consumers’ firsthand experiences — shows that U.S. firms and households are shouldering the higher costs.

That burden is expected to grow heavier in the months and potentially years ahead as new tariffs take effect and existing ones become more entrenched in supply chains.

If foreign exporters were truly absorbing tariff costs, U.S. import prices should have declined, reflecting lower pre-tariff export prices. Instead, data show import prices (excluding tariffs, insurance, and shipping costs) have remained steady.

They have risen 0.5% since the November election and 0.2% since March, when most new tariffs were announced, according to a recent note from Pantheon Macroeconomics.