Americans are the ones paying for tariffs, study finds

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: A new economic study finds that Americans — not foreign exporters — are paying almost the full cost of US tariffs, directly contradicting claims by Donald Trump that tariffs are funded by overseas producers

🔭 The context: The research shows US tariffs act like a domestic consumption tax, raising prices for American shoppers rather than reducing costs abroad
• This challenges Trump’s leverage as he threatens new tariffs against European countries amid tensions over Greenland and transatlantic trade

🌍 Why it matters for the planet: Tariffs that raise consumer prices can slow clean technology adoption, from energy-efficient appliances to electric vehicles, by making imports more expensive
• Trade wars also risk fragmenting global supply chains needed for low-carbon technologies, undermining climate cooperation at a critical moment

⏭️ What’s next: The findings could weaken US negotiating power if Europe retaliates, while adding pressure on policymakers to rethink tariffs that may hurt consumers, climate goals, and green investment without delivering geopolitical gains

💬 One quote: “U.S. tariffs functioned as a consumption tax on Americans,” the study concluded.

📈 One stat: Nearly 100% — the share of tariff costs borne by US consumers, according to the research.

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