Business Daily After Liberation Day: Who is footing the tariffs bill?
Mar 29, 2026
Thomas Philipson, former Council of Economic Advisers chair, offers the political rationale behind the tariff push. Ben Steele, CFR international economics director, analyzes who ultimately bears tariff costs and macro effects. Rick Waldenberg, founder of Learning Resources, describes supply chain pain, higher costs and legal fights. They probe collection mechanics, pass-through dynamics and the wider inflation impact.
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Liberation Day Made Tariffs A Political Mission
- Tariffs were rolled out as a centerpiece of 'Liberation Day' to raise import taxes broadly and 'level the playing field'.
- President Trump's April 2, 2025 speech framed tariffs as reclaiming American industry and making the US wealthy again, setting the political mandate.
Toy Maker Borrowed Millions To Pay Tariffs
- Rick Waldenberg's Learning Resources halted hiring, cut spending and accelerated supply-chain moves out of China after the tariffs hit.
- He says duties pushed his firm's marginal tax rate above 100%, forcing price passes and bank borrowing to cover tariff bills.
Importers And Consumers Bore The Tariff Burden
- Economists conclude most tariff incidence fell on US importers and consumers, not foreign exporters.
- Ben Steele estimates importers bore ~90–95% of the cost and consumers have absorbed about half of that through higher prices.