Consumers and Businesses Covered 90% of 2025 Tariffs

Most of Trump’s tariffs last year were paid by American consumers and businesses, according to the report from the Federal Reserve Bank of New York.  The study found that 90% of the cost of these tariffs was passed on to US businesses and consumers through higher prices. 

In 2025, the average tariff on imported goods increased to 13%, up from less than 3% previously. From January to August, American importers paid approximately 94% of the tariff costs; by November, exporters were paying slightly more, but U.S. companies were still paying 86% of the total tariffs.

White House economic advisor Kevin Hassett strongly criticised the studies. He said, “I mean, the paper is an embarrassment,” and added, “the people associated with this paper should presumably be disciplined, because what they’ve done is they’ve put out a conclusion which has created a lot of news that’s highly partisan based on analysis that wouldn’t be accepted in a first-semester econ class”. The New York Fed did not comment on this remark.   

The U.S. administration states that foreign companies pay most tariffs. Trump argued that many exporting countries must lower their prices to keep selling in the United States. However, most economists argue that tariffs typically raise prices for American buyers. 

Despite concerns that the tariff would raise inflation, price increases have remained moderate. In December, the Consumer Price Index was 2.7%. The economy has also shown strong growth, expanding at a 4.3% yearly rate in the third quarter. Employers added 130,000 jobs in January.

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The U.S. government collected $287 billion in tariffs in 2025. However, the Supreme Court may soon decide whether some of these tariffs were legally allowed.