Tariffs are paid at the border by U.S. importers, and studies of the 2025 tariffs find American firms and consumers bear roughly 90–95% of the cost. No mechanism sends the bill to foreign governments.
As a matter of customs mechanics, the importer of record — almost always a U.S. company — pays the tariff to U.S. Customs and Border Protection. The economic question is who ultimately absorbs it, and the evidence points home: Federal Reserve Bank of New York and Columbia University economists estimate Americans are paying about 90% of the cost of the 2025 tariffs, the Congressional Budget Office expects the U.S. side to bear about 95%, and estimates from the Kiel Institute and NBER run higher still. Foreign exporters absorb only a small slice through price discounts.
Sources
- Who Is Paying for the 2025 U.S. Tariffs? — Liberty Street Economics — Federal Reserve Bank of New York
- CBO’s Updated Projections of the Budgetary Effects of Tariffs — Congressional Budget Office
- Americans Are Paying About 90% of the Cost of Trump’s Tariffs: Analysis — The Fiscal Times
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