96% of tariff costs borne by the United States, draining liquidity and causing stagnation in the crypto market

CoinVoice · 2026-01-20T03:10:44+00:00

Research from the Kiel Institute for the World Economy in Germany shows that from 2024 to 2025, 92% of the costs of U.S. tariffs will be borne by American consumers and importers, while foreign exporters will only bear 4%. This challenges the view that tariffs are paid by foreign producers and indicates that tariffs weaken disposable liquidity, impacting the crypto market.

CoinVoice

2026-01-20 03:10:44

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CoinVoice has learned that a study by the Kiel Institute for the World Economy in Germany shows that between January 2024 and November 2025, 96% of the costs of U.S. tariffs are borne by American consumers and importers, while foreign exporters bear only 4%. Nearly $200 billion in tariff revenue is almost entirely paid domestically in the United States.

The study challenges the political narrative that tariffs are paid by foreign producers. In reality, foreign exporters maintain stable prices but reduce shipment volumes, with costs passed on by U.S. importers at the border. Only about 20% of the tariff costs are transmitted to consumer prices within six months; the rest are absorbed by importers and retailers, squeezing profit margins.

Meanwhile, tariffs slowly drain disposable liquidity, reducing funds available to consumers and businesses for speculative assets, causing the crypto market to neither crash nor rise since October, entering a liquidity stagnation period.

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