A new report from the Federal Reserve Bank of New York finds that the cost of tariffs on Chinese imports is being borne primarily by buyers in the U.S., not Chinese sellers.

Federal Reserve economists analyzed import price data and found that Chinese exporters have not appreciably lowered their prices to absorb the cost of tariffs, which are now 25% on approximately $250 billion of imports from China.

Instead, Chinese companies have sacrificed market share to competitors in Asia and Europe that aren’t subject to tariffs.

Those tariffs, which the New York Fed report calls “a form of taxation,” are being paid by U.S. businesses (manufacturers, wholesalers and retailers) and consumers through higher prices.