US EditionNew Study: U.S. Consumers Bear 90% of Tariff Costs
The average U.S. tariff on imports rose from 2.6% to 13% in 2025, with import prices increasing 11% more for tariffed goods, impacting supply chains, New York Fed researchers said.
- On February 12, 2026 the Federal Reserve Bank of New York said Americans bore 90% of President Donald Trump's tariffs.
- Study authors noted average tariffs climbed from 2.6% to 13% during 2025, pushing back against the Trump administration's claim that foreigners would pay the levies.
- Authors reported pass-through rates showing Americans absorbed 94% of tariffs last year from January–August, easing to 92% in September–October and 86% in November, with past work finding 100% pass-through by foreign exporters.
- Federal Reserve officials say higher tariffs raised the cost of imported goods, complicating interest-rate decisions and increasing prices for U.S. consumers and businesses.
- The Supreme Court is set to rule on the legality of many of President Donald Trump's tariffs, which officials say impacts may wane but cost-of-living effects could persist.
61 Articles
61 Articles
Another Tax Hike: As Always, Americans Pay for American Tariffs
In case you haven’t figured out that tariffs are really bad economic policy, the Federal Reserve Bank of New York substantiates what we’ve known since the 1890s about tariffs—the vast bulk of tariff revenue is coming out of Americans’ pockets: We highlight two main results. First, 94 percent of the tariff incidence was borne by the U.S. in the first eight months of 2025. This result means that a 10 percent tariff caused only a 0.6 percentage poi…
This New York Federal Reserve analysis undermines Trump's assertions that tariffs would be borne primarily by foreign exporters, not American consumers.
US consumers, businesses bore about 90% of Trump’s tariffs, NY Fed study finds
US businesses and consumers paid about 90% of the cost of President Donald Trump’s sweeping tariffs last year -- contradicting his repeated claims that foreign countries were footing the bill, according to a new study from the Federal Reserve Bank of New York.
According to the US central bank, 90 percent of import costs are passed on to American companies and consumers.
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