TariffWars

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Who Is Really Paying for Trump’s Tariffs?

For months, former U.S. President Donald Trump has promised supporters that his tariffs would target foreign nations, not American citizens. Back in September 2024, he told crowds:

“We’re going to be a tariff nation. It’s not going to be a cost to you. It’s going to be a cost to another country…. I heard Kamala the other day, Comrade Kamala. She said, 'Oh, if you do that, he’s raising your taxes.' No. No. No. I’m not raising your taxes. I’m raising China and all of these countries in Asia and all over the world, including the European Union by the way, which is one of the most egregious.”

One year later, however, the numbers tell a different story. The truth is that American businesses and industries are the ones paying for these tariffs — not China, not Europe, not Mexico.

The Numbers Behind the Tariffs

Image 1 – Rising Tariff Revenues

Tariff revenues collected by the U.S. government are climbing rapidly. For every dollar’s worth of goods entering the country, Washington is now taking a bigger cut in taxes. This shows the system is functioning exactly as designed — but it’s U.S. importers footing the bill, not foreign exporters.

Image 2 – Limited Price Adjustment by Exporters

Foreign exporters have only lowered their prices by about 2% at most. This means American importers are still paying nearly the same as before, plus the tariffs on top. In short, exporters aren’t absorbing the costs — so the tariff burden remains firmly on the U.S. side.

Put simply: tariffs have not forced Chinese, European, or Mexican sellers to meaningfully cut prices.

Legal Roadblocks

Trump has tried to justify his actions by citing the International Emergency Economic Powers Act (IEEPA). But both lower courts have rejected this move, and now he is pushing for a speedy Supreme Court trial. The outcome will decide whether these tariffs survive or collapse legally.

Why Haven’t Consumers Felt the Pain Yet?

So far, American shoppers haven’t seen dramatic price hikes. That’s because many importers are temporarily absorbing the costs instead of passing them down. Some possible reasons include:

Goods stocked before tariffs took effect
Legal uncertainty about whether tariffs will last
Fear of losing customer base
Competitive pressure within industries
Strategic short-term absorption of costs

What Comes Next?

If the Supreme Court upholds the tariffs, importers will eventually raise prices. This means consumers across the U.S. will feel the squeeze, little by little, as businesses can no longer carry the added costs.

At that point, only if markets are wide enough or competition is fierce might exporters step in and share the burden. Until then, the reality is clear:

Tariffs are taxes — and Americans are paying them.

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Behind the curtains, top CEOs openly admit that Trump is turning into a problem for business. Honestly, it’s no shock — he can’t expect every manufacturing industry to shift back to the U.S. The reality is: people demand affordable products. If illegal tariffs keep piling up, the whole setup can collapse anytime. 👇
A major manufacturing CEO explained it perfectly:
“If the U.S. government really wants to protect industries, they should focus on making those industries successful, not just throw random tariffs and think companies will move production here. Consumers need low-cost products — from sneakers to clothing, from power tools to hand tools. Does it make sense to manufacture all of that in America? I don’t think so. Some industries, yes, but expecting every sector to come back? Unrealistic.”
Interestingly, around 75% of executives believe the courts are right in calling Trump’s tariffs illegal. And if the Supreme Court steps in with the same verdict, corporate America will be in chaos yet again, facing more uncertainty.
Another U.S.-based manufacturing CEO added his frustration:
“Manufacturing has always been America’s strength, and yes, it should grow here. But the problem is government unpredictability. Today tariffs are calm, tomorrow they change. Imports mainly come from Mexico, Canada, and China — but none of those deals are ever truly stable. So, if I plan something new, there’s always the risk that in 90 or 120 days tariffs shift again. No CEO wants to look like a fool, so we hold back.”
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