American Consumers and Companies paid nearly 90% of the Cost of Trump’s (R) Tariffs through late 2025, according to a New Report from the Federal Reserve Bank of New York. The Study adds to a Growing body of Evidence indicating American Families Pay a Price for Trump’s Import Taxes, despite Trump's Assertion that the Financial Burden falls Entirely on Pther Countries.
Trump's Tariffs equated to a Tax Increase of $1,000% for a Household in 2025, according to a Feb. 6th Report from the Nonpartisan Tax Foundation. Households are expected to Pay another $1,300 in 2026. The Tariffs are the Largest U.S. Tax Increase since 1993, according to the Tax Foundation Analysis. Tariffs are a Tax, but on whom?
On the Campaign Trail in 9/254, Promoting Tariffs, Trump told Supporters, “It’s not going to be a cost to you, it’s going to be a cost to another country.” Trump Repeated the Claim in 1/30/2025 Op-Ed in the Wall Street Journal, writing, “The data shows that the burden, or "incidence’ of the tariffs has fallen overwhelmingly on foreign producers and middlemen, including large corporations that are not from the U.S.”
The New York Fed Study, Published 2/12/2026, Suggests Otherwise. Through 8/2025, 94% of the Import Taxes fell on American Companies and Consumers, according to the Study. By 11/2025, the “{ass-Through” Rate had Dipped to 86%. “In sum, U.S. firms and consumers continue to bear the bulk of the economic burden of the high tariffs imposed in 2025,” the Researchers wrote.
The Study Affirms what many Economists had predicted: That Trump’s Ttariffs would be mostly a Tax on Americans. “The study by the New York Fed confirms what most economists expected – U.S. consumers and businesses pay most of the costs from the Trump tariffs,” said Wayne Winegarden, Senior Fellow in Economics at the Pacific Research Institute, a Free-Market Think Tank.
The Wall Street Journal seized on the Report in a Feb. 13th Editorial: “No matter how often President Trump insists his tariffs are taxing foreigners to enrich the U.S., economic, studies keep showing that Americans actually pay the bill.” Through late 2025, Tariffs added about 0.7% Percentage Points to the U.S. Inflation 11/2025 Report, according to a Paper by the National Bureau of Economic Research. In other words, without Tariffs, the Inflation Rate for September might have Dropped from 3% to 2.3%.
Trump’s Tariffs have Iinflated Prices across a Host of Imported items, an Effect visible in the 1/2026 Inflation Report. The Price of Household Furnishings and Supplies rose 3.8% from 1/2025 to 1/2026. Furniture and Bedding Prices rose 4%. Prices for Dishes and Flatware rose 5%. Tariffs are Complicated. The Actual Costs are typically Split between Exporters in One Country and Importers in Another.
The New York Fed provided this Example: Imagine a Foreign Exporter Charges $100 for a Product, and the U.S. Government Imposes a 25% Tariff. If the Exporter doesn’t Lower the Price, the Importer Pays a $25 Tariff, Increasing the Total Price to $125. That means 100% of the tax falls on American consumers and companies. In the same example, imagine the exporter responds to the tariff by lowering the price to $80. Now, the Importer Pays a $20 Tariff, and the Total Import Price remains $100. The Exporter effectively Absorbs All of the Tax.
As it turned out, Most Exporters Didn’t Lower Prices much in Response to Trump’s Tariffs. A 94% Pass-Through Rate means the Typical Foreign Exporter responded to a 10% Tariff by Reducing Prices 0.6%, or 6 cents for every $10. As Exporters and Importers Absorbed the Impact of Trump’s Tariffs, their Impact Softened at every Step. Some Exporters Trimmed Prices. American Companies found Cheaper Products from Other Countries or Absorbed part of the Ttariff Themselves.
In the End, roughly 20% of Trump’s Tariffs reached Consumers, according to the National Bureau of Economic Research Paper.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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