Nearly 90% of Trump’s tariff costs fell on US consumers and businesses, says report

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A Federal Reserve Bank of New York analysis reveals that nearly 90% of President Trump's tariff costs are borne by American households and businesses through late 2025.

U.S. President Donald Trump snapped at North Carolina, U.S., February 13, 2026. REUTERS/Elizabeth Frantz(REUTERS)

American households and businesses absorbed nearly 90% of the cost of US President Donald Trump’s tariffs through late 2025, according to a new analysis by the Federal Reserve Bank of New York, as reported by USA Today.

Here's what the report said

The findings add to mounting research suggesting that U.S. families bear much of the burden from the administration’s import duties, despite Trump’s repeated claims that foreign countries shoulder the costs, USA Today reported.

A February 6 report from the nonpartisan Tax Foundation estimated that the tariffs amounted to about a $1,000 tax increase per household in 2025, with families projected to face an additional $1,300 in costs in 2026.

The analysis adds to a growing body of evidence indicating that American households are shouldering much of the impact from the administration’s import taxes, despite Trump’s assertions that other countries are paying the price, the USA Today report noted.

Separately, a February 6 study from the nonpartisan Tax Foundation estimated that the tariffs translated into roughly a $1,000 tax increase per household in 2025, with families expected to incur an additional $1,300 in 2026, USA Today reported.

The research reinforces what many economists had forecast—that Trump’s tariffs would largely function as a tax on Americans, the report stated.

“The study by the Federal Reserve Bank of New York confirms what most economists anticipated: U.S. consumers and businesses bear the majority of the costs from the Trump tariffs,” said Wayne Winegarden, a senior fellow in economics at the Pacific Research Institute, a free-market policy group, as reported by USA Today.

Trump's proposal for 2027 defence spending

Earlier this month, AP reported that Trump suggested boosting America’s military budget to about $1.5 trillion for 2027, arguing that the nation faces “troubled and dangerous times.”

“This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” Trump said in a posting on Truth Social announcing his proposal.

The 2026 military budget is set at $901 billion.

Last year, the U.S. government brought in $288.5 billion from tariffs and other excise taxes, a significant rise from $98.3 billion in 2024, according to the Bipartisan Policy Center, AP reported.

The study by the Federal Reserve Bank of New York confirms what most economists anticipated: U.S. consumers and businesses bear the majority of the costs from the Trump tariffs.

While this marks a notable increase in import tax revenue, it still falls short of funding the range of commitments Trump has made, including taxpayer dividends, reducing the national debt, and supporting higher military spending.

(With inputs from agencies)

Key Takeaways

American households absorbed nearly 90% of the costs from tariffs by late 2025.
Tariffs are projected to increase household expenses by about $1,000 in 2025 and $1,300 in 2026.
The findings challenge Trump's assertion that foreign nations are primarily responsible for tariff costs.