New York Fed: American Consumers and Companies Bear 90% of Trump’s Tariffs
The New York Federal Reserve has revealed that American consumers and companies are significantly bearing the burden of tariffs imposed during Donald Trump’s presidency. While Trump has claimed that foreign producers are responsible for the costs of these tariffs, data indicates otherwise.
Key Findings from the New York Fed Report
A report released by the Federal Reserve Bank of New York highlights that by 2025, American households and businesses covered approximately 90% of the tariffs. The findings were based on extensive data from the U.S. Census Bureau and Foreign Trade Statistics.
Tariff Payments Breakdown
- 94% of tariffs were paid from January to August 2025.
- 92% were paid from September to October 2025.
- 86% were accounted for in November 2025.
The report’s authors, Mary Amiti, Chris Flanagan, Sebastian Heise, and David E. Weinstein, stressed that the economic burden of tariffs primarily falls on U.S. firms and consumers. They noted that average tariff rates surged five times, from 2.6% to 13% throughout 2025.
Economic Impact of Tariffs
While Trump argued that the tariff burden lies with foreign exporters, the data reflects a different reality. Domestic companies have faced pressure to absorb increased costs from tariffs or transfer these to consumers, who are now experiencing higher prices.
Consumer Confidence and Market Reactions
The impact of tariffs has led to declining consumer confidence, which recently fell to its lowest level in over a decade. Survey responses indicated growing concerns over inflation and rising costs attributed to tariffs.
Some notable examples include:
- Procter & Gamble announced price increases on household products due to tariffs.
- General Motors reported a $1.1 billion profit hit as a direct result of the levies.
Broader Economic Observations
Economic analyses from various organizations, including the Tax Foundation, have echoed the perspective that the costs of tariffs often exceed any benefits derived from tax cuts. The Tax Foundation recently estimated that the tariff burden might reach $1,300 per American household by 2026, overshadowing the average benefit of a tax cut by $1,000.
These findings serve as a critical reminder that tariffs, while intended as a protective measure, can have significant negative consequences for American consumers and businesses. As the economic landscape evolves, the ramifications of these levies continue to resonate throughout the economy.
