A new study indicates that American consumers are bearing the brunt of tariffs imposed by the Trump administration, contrary to initial promises that foreign nations would largely shoulder the costs. Research published Monday by the Kiel Institute for the World Economy, a German think tank, found that Americans are paying for 96% of the tariffs through increased prices for goods.

The findings contradict President Trump's earlier assertions, such as his statement in April 2025 when announcing the "Liberation Day" tariffs, where he claimed the U.S. had been economically exploited by other countries. The report suggests that these tariffs have instead increased financial burdens for American citizens.

Trump has frequently employed tariffs as a tool in international political disputes, extending beyond traditional trade negotiations. Over the weekend, he escalated trade tensions with several European nations – Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland – after they participated in joint military training exercises in Greenland. These countries face a 10% tariff, scheduled to take effect on February 1, which could rise to 25% by June 1 if the U.S. fails to secure a deal to purchase Greenland.

The dispute over Greenland highlights a recurring theme in Trump's foreign policy, where economic leverage is used to pursue geopolitical objectives. This approach has drawn criticism from international observers who argue that it destabilizes trade relations and undermines established diplomatic norms. The potential 200% tariff threatened against French wine, following criticism from French President Emmanuel Macron, further illustrates this pattern. Such actions have raised concerns within the European Union, which views them as a challenge to its sovereignty and economic interests. The EU has previously indicated its willingness to retaliate against U.S. tariffs with countermeasures of its own, potentially leading to a broader trade conflict. The global implications of these trade disputes extend beyond immediate economic impacts, potentially reshaping international alliances and trade agreements.