It is not the foreigners but the Americans who are being harmed by Trump’s tariffs… the US people bear 90% of the burden.

New Delhi:A new report has sparked debate regarding America’s ‘America First’ trade policy. The tariff policy which former President Donald Trump had presented as strict on foreign companies is now being questioned. The latest study claims that the major part of the import duty was not paid by foreign countries, but by American consumers and businessmen. This analysis has been done by economists associated with the Federal Reserve Bank of New York.

According to the report, about 90 percent of the burden of tariffs imposed on imports fell at the domestic level. That is, the impact of the tariffs that were imposed to create economic pressure on foreign countries was felt more within America itself. According to information published in USA Today, the Tax Foundation report released on February 6 shows that in 2025, every American family faces an average additional burden of $ 1000. It is estimated that by 2026 this amount may increase to $1300.

Direct impact on consumers and businessmen

The report said that heavy duties were imposed on products coming from many countries including China. At that time it was said that only foreign companies would pay its price. But the reality turned out to be different. The importing American companies themselves bore this additional cost and later passed the same to the customers in the form of increased prices. This means that the tariff took the form of a domestic tax. There was an increase in the prices of everyday goods and industrial products, which affected the pockets of common people.

Why did foreign companies not reduce the prices?

The report also revealed that foreign exporters reduced the prices of their products very little. They were successful in passing the burden of tariffs on to American importers instead of bearing the burden themselves. As a result, imported goods became more expensive in the American market.

impact on inflation

When companies’ costs increase, they raise the prices of their products and services. This is the reason why this policy also affected inflation. Economists say protectionist measures are often taken in the name of protecting domestic industries, but their benefits may be limited if the burden ultimately falls on consumers.

Experts believe that while formulating trade policy, it is important to seriously consider its long-term and macroeconomic effects. If the burden of tariffs falls primarily within the country, it could have a negative impact on consumer spending, investment and competition.