Get 100% ad-free experienceWho Pays for US Tariffs? New Research Reveals American Companies Bear the BruntView all comments (0)0US companies and consumers are paying for tariffs. Piper Sandler shared an excellent piece of research which shed light on a key macro question: who is paying for US tariffs so far?The US has been collecting tariffs at an increased pace over the last few weeks, with the annualized pace looking like $400bn+ in duties collected.That’s a big number which is helping to optically reduce deficits, but the real question is: who is paying for tariffs?The simple equation to think about this problem is:Tariffs = US import prices + US margins + US customer pricesIf import prices are falling, exporters are paying for tariffs.If US companies’ margins are falling, US companies are paying.If goods prices are increasing, US consumers are paying.Piper Sandler found that so far:1. Exporters are absorbing tariffs up to only 10-15%2. Consumers are absorbing tariffs for 25-30%3. US companies are bearing the brunt with ~60% of tariffs-led price increases being absorbed and hence hitting their marginsWho do you think will end up paying for tariffs when the dust settles?***This article was originally published on The Macro Compass. Come join this vibrant community of macro investors, asset allocators and hedge funds - check out which subscription tier suits you the most using this link.Who Pays for US Tariffs? New Research Reveals American Companies Bear the BruntView all comments (0)0Latest commentsInstall Our AppScan QR code to install appRisk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.© 2007-2025 - Fusion Media Limited. All Rights Reserved.