96% of tariff costs are borne by the United States, draining liquidity and causing the crypto market to stagnate

According to ChainCatcher, research from the Kiel Institute for the World Economy in Germany shows that of the US tariffs imposed from January 2024 to November 2025, 96% of the costs are borne by US consumers and importers, while foreign exporters bear only 4%. Nearly $200 billions in tariff revenue is almost entirely paid domestically within the United States.

The research challenges the political rhetoric that tariffs are paid by foreign producers. In reality, foreign exporters keep prices stable but reduce shipment volumes, and the costs are passed on by US importers at the border. Only about 20% of the tariff costs are passed on to consumer prices within six months, with the rest absorbed by importers and retailers, squeezing profit margins.

Meanwhile, tariffs slowly drain disposable liquidity, reducing the funds available to consumers and businesses for speculative assets. This has led the crypto market, since October, to neither crash nor rise, but instead enter a period of liquidity stagnation.