The Incidence of Tariffs: Rates and Reality
Abstract
In 2025, statutory tariff rates on US imports rose to levels not seen in over one hundred years. What were the implications for prices? On the one hand, shipping lags, exemptions, and enforcement gaps kept the actual implemented rates at only half of the statutory rates, moderating the tariffs' impact. On the other hand, tariff pass-through to US import prices reached 92 percent, so the United States bore a large share of the costs. We study the incidence of the 2018-2019 and 2025 US tariffs and discuss implications for US sourcing, domestic manufacturing costs, and the dollar.
Fields of Study & Subjects
Canadian Policy and Governance
Global Political and Economic Relations
Global trade and economics
Publication details
- Journal / source
- The Journal of Economic Perspectives
- Publisher
- American Economic Association
- Volume
- 40
- Issue
- 3
- Pages
- 123–144
- Publication date
- 1 August 2026
- Language
- EN