“Trillions” in new tariff income, so says President Trump. He even pondered a rebate to some Americans

Trump is either so ignorant on the subject or lying through his teeth, but does it matter- pretty normal stuff these days either way.

Donald Trump has repeatedly stated that foreign countries, particularly those with which the U.S. has a trade deficit, are the ones who pay the tariffs. He has claimed that these tariffs, which are taxes on imported goods, make America “great and rich again” by forcing other nations to pay to access the American market.

While Trump asserts that other countries are paying, economists and trade experts generally agree that the costs of tariffs are primarily borne by American importers and consumers. The tariffs are a tax paid by the importing American company to the U.S. government. While foreign suppliers may sometimes lower their prices to absorb some of the cost, U.S. companies often pass these increased costs on to consumers in the form of higher prices.

However, independent research and economic data paint a very different reality:

• Economists analyzing Trump-era tariffs (2018–2019) found nearly complete pass‑through to U.S. firms and consumers—the tariff costs were not absorbed abroad Financial Times+3Tax Foundation+3Bankrate+3.
• In 2025—a continuation of and expansion in tariff policy—studies show that Chinese exporters only reduced prices slightly (~0.7%), meaning Americans bore nearly the full cost Wikipedia+1Axios+1.
• Publishers such as the Tax Foundation, Bankrate, and others estimate that U.S. households are paying $1,200 to over $2,400 per year due to Trump’s tariffs Tax Foundation+1Bankrate+1.
• Retailers like Walmart and AutoZone have confirmed they cannot fully absorb tariffs and are raising prices on final consumers Axios+2Financial Times+2Bankrate+2.
• Even Republican figures such as Mike Pence have publicly acknowledged that American consumers are paying the price—not foreign exporters thedailybeast.com+1Financial Times+1.