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

ChainCatcher News, 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, with foreign exporters bearing only 4%. Nearly $200 billion in tariff revenue is almost entirely paid domestically in the U.S.

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, leading to a liquidity stagnation period in the crypto market since October, with no crash or rally.