Americans Still Paying 100% of Trump’s Tariffs

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As you may recall, economists who have studied Donald Trump’s tariffs have concluded that American consumers and firms are basically paying all of them. It’s just a big ol’ sales tax hidden slightly under the surface of products from China and elsewhere.

But that should change over time as importers adjust their supply chains and switch to other sources. By now, we should be seeing the effect of that and the prices borne by US consumers should be decreasing. A team of economists ran the numbers again to see where we are, and they concluded that—well, here’s the chart:

There’s been no change at all. American firms and consumers are still paying nearly 100 percent of the cost of the tariffs. The only exception, it turns out, is steel, where foreign manufacturers have lowered their prices in the face of increased competition.

So that’s that. Previous estimates that American households are paying nearly $1,000 per year in hidden tariff costs are still in effect. Have a nice new year.

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We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

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