Foreign Exporters Absorbed 47% of 2025 US Tariffs as Toyota Profit Fell 37%
Updated
Updated · economy.ac · Aug 19
Foreign Exporters Absorbed 47% of 2025 US Tariffs as Toyota Profit Fell 37%
2 articles · Updated · economy.ac · Aug 19
Summary
New weighted trade data show foreign exporters absorbed 40% to 50% of the 2025 U.S. tariff increase, leaving U.S. buyers to pay about 53 cents of each tariff dollar.
That split widened over time from a June snapshot showing exporters absorbing just 14%, as dominant suppliers with pricing power chose to cut export prices rather than lose U.S. market share.
Toyota illustrates the cost: April-June operating profit fell 37% to 841 billion yen, with tariffs accounting for about 450 billion yen of the decline after it held U.S. vehicle volumes steady.
Market share drove the uneven burden—top suppliers absorbed up to 70% on average, while smaller exporters passed through nearly all tariffs; Chinese toy exporters absorbed about 80% and Korean automakers about half.
Currency weakness added a second buffer, with the yen, won and managed yuan lowering dollar export costs, suggesting tariff effects depend less on a single national average than on sector concentration and exchange rates.