The Middle Column

No side. Just the record.

No side taken · Sources attached · Corrections public

Brief MC-0001 · Version 3.0 exemplar draft
Filed under: Money and taxes. Entered by the Clerk. Stamped: record checked, October 26, 2026.

Tariffs: who actually pays

One claim you will hear

“tariffs serve many purposes...and the main purposed was to charge countries that make tons of money off of their exports to pay some of that money to America.”

Quoted exactly as posted, Michigan, October 2026.

The Middle Column 90% the share of the tariffs’ economic burden that fell on U.S. firms and consumers through November 2025.
Federal Reserve Bank of New York, February 2026.

Another claim you will hear, in the form it usually takes

Tariffs are a tax paid entirely by American consumers, and they are wrecking the economy.

This claim circulates in many wordings, so it is stated in its common form, without quotation marks. Quotation marks in this brief mean exact, sourced words.

What follows is the record underneath both claims.

The record, in brief: The duty is collected from the American importer, and it is not collected from the foreign country. Most of the cost lands in the United States, and not all of it lands here, because foreign exporters absorbed a share of it as the year went on. The measured damage is real, and it is a drag on the economy rather than a wreck of it.

$194.9B
customs duties collected in FY2025, paid by U.S. importers of record. Verified
$1.24T
2025 goods trade deficit, the largest in figures back to 1960. Verified
~$700
average household cost in 2026, after the Supreme Court ruling cut the tariff set back; about $1,000 in 2025 (Tax Foundation). Corroborated

What is true in the first claim: the goods deficit with China shrank to $202 billion, the smallest in over 20 years.
What is true in the second claim: Americans bear most of the burden, at roughly 90 cents of every tariff dollar.

1The claims

The first claim is quoted word for word from a post in circulation in Michigan in October 2026, and the spelling and punctuation are the writer’s own, because a quotation in this brief is a promise that the words are exact. The same writer put the dependence concern this way: “America has forgotten how to manufacture anything, which means we are a sitting duck, relying on other countries instead of being self sufficient.” The second claim is stated in its common form, because it circulates in many wordings and no single person’s sentence can honestly be quoted for it. Both claims are repeated constantly, at work, at family tables, and in comment threads across the country. This brief checks them against the record, figure by figure, and then leaves the part that is genuinely debatable where it belongs, which is with the reader.

2What this argument is really about

Underneath both claims sits one question, and it is whether a deliberate cost, paid mostly at home, is worth paying for industrial independence and leverage abroad. That is a question about values and strategy, and reasonable people answer it differently. Who writes the check to Customs is not a values question, and neither is what the trade deficit did, or what the tariffs cost a household. Those are in the record, and the record is below.

3The record

4Where the first claim holds, and where it breaks

The first claim holds on China, because the bilateral deficit narrowed to its smallest in over twenty years, and the concern about depending on a strategic rival for essential goods is a serious position with evidence behind it. The claim breaks on the mechanics of payment, because foreign countries do not pay the duty, the American importer pays it, and about 90% of the burden stays in the United States. The manufacturing sentence breaks as well, because the United States is second in the world in manufacturing output, even though its share of global output has fallen over the decades. A further claim made in the same post, that other countries have not been willing to contribute to military defense, is out of date, because in 2025 every NATO ally is expected to meet or exceed the 2% of GDP target for the first time, up from three allies in 2014.

5Where the second claim holds, and where it breaks

The second claim holds on the central mechanics, because a tariff is a tax collected from Americans, and its cost appears in American prices, including on goods that never cross a border, such as a car built in Michigan with tariffed steel. The claim breaks at the word “entirely,” because foreign exporters absorbed a measurable share of the burden, and that share grew as 2025 went on. The claim also breaks at the word “wrecking,” because the measured effects, a price level roughly 1% higher, household costs in the low thousands of dollars, and long-run GDP about 0.3% smaller in the Yale model, describe a real cost and a drag on growth. They do not describe a collapse.

6What is true in both

Strip both claims down and they share a skeleton. Tariffs cost money. Tariffs change behavior, for countries and for companies. And the country has to decide what it is buying with them. The record answers the first two parts. The third part is the actual debate, and it cannot be settled by a dataset, including this one.

7The number in the middle

90%. The first claim, taken at full strength, needs the figure to be 0%, because it says the exporting countries pay. The second claim, taken at full strength, needs the figure to be 100%, because it says American consumers pay all of it. The Federal Reserve measured the figure, and the measured figure is about 90%.

8What would settle it, and the question it leaves

The factual part settles with a stated goal and a stated price. If the goal was a smaller deficit with China, the deficit narrowed, at a measured household cost of about $1,000 in 2025 and about $700 in 2026 under the tariffs that remain. If the goal was a smaller overall deficit, the record shows that it did not happen, because the deficit moved to other countries and the goods deficit set a record. What the record cannot settle is whether what the tariffs are buying is worth what they cost. That is a values question. It belongs to the reader, and it is a real one.

9What we simplified

“Burden” combines what firms absorbed in their margins and what consumers paid in prices, and the split varies by product and by month. Household figures are averages, and any individual household’s cost depends on what it buys.

10Words in this brief

Tariff incidence
Who actually bears the cost after prices adjust. Commonly misused as: whoever hands the money to Customs. The check-writer and the cost-bearer are different questions.
Importer of record
The U.S. company legally responsible for the duty when goods enter the country. Commonly misused as: a middleman who can simply refuse. The duty is owed before the goods are released.
Trade deficit
The amount by which imports exceed exports in a period. Commonly misused as: money lost or a bill owed. It is a flow of trade, not a debt notice.
Section 232 and IEEPA
Two different legal authorities for tariffs. Commonly misused as: interchangeable. The Supreme Court struck down the IEEPA tariffs in February 2026; the Section 232 tariffs remain in place.

11Sources

Federal Reserve Bank of New York, Liberty Street Economics (Feb 2026) · USAFacts, U.S. Treasury fiscal data FY2025 · Tax Foundation (Feb 2026) · Yale Budget Lab, State of U.S. Tariffs (Nov 17, 2025) · U.S. Commerce Department 2025 trade data (reported Feb 19, 2026) · UN manufacturing data via NIST · NATO defence spending release (Aug 2025) · U.S. Supreme Court, IEEPA ruling (Feb 20, 2026). Receipt Pack MC-0001 available on request.

You can debate what to do about the facts here. The facts are not the debate.