Hanke Blasts Trump Tariff Claims: 'Tariffs Have Made Us Poor'

Johns Hopkins University economist Steve Hanke has rejected President Donald Trump's claim that tariffs have enriched the United States. Hanke took to X, where he stated that Trump's statement 'Tariffs have made us rich. I love tariffs' is incorrect. He argued that American businesses and households ultimately bear the cost of import duties.

Hanke pointed out that U.S. Customs and Border Protection requires the importer of record, not a foreign government, to calculate and pay estimated duties after merchandise enters the country. This process supports Hanke's central point that Trump's tariffs are essentially a tax on Americans that makes them poorer.

Research from the New York Federal Reserve found that U.S. consumers and companies absorbed about 90% of Trump's 2025 tariffs, while foreign exporters generally did not cut prices enough to offset the duties. The Congressional Budget Office estimated that people and businesses in the United States bore most costs, with only about 5% being absorbed by foreign companies.

Trump allies have disputed these findings, with Federal Reserve Governor Stephen Miran arguing that tariff effects remain 'quite muted' and data does not show American businesses broadly passing higher costs to consumers. However, the New York Fed findings directly challenge this position.