A recent analysis from the Federal Reserve Bank of New York has confirmed what many economists have long warned: the burden of tariffs imposed during President Trump's administration is predominantly shouldered by US consumers and businesses.The report indicates that nearly 90% of the economic burden of these tariffs fell on American firms and consumers, a stark contrast to claims from the Trump administration that foreign producers bear the brunt of these costs.
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cbsnews.comcnn.comThe analysis highlights a significant increase in the average US tariff rate on imports, which rose from less than 3% to 13% in 2025.This dramatic surge in tariffs has resulted in US importers bearing a substantial portion of the costs—94% during the first eight months of 2025, tapering slightly to 86% by November of the same year.
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cbsnews.comThese findings align with similar reports from the Congressional Budget Office (CBO) and the National Bureau of Economic Research, which corroborate that businesses are passing a significant portion of the tariff costs onto consumers.
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cnn.comThe economic implications of these tariffs are profound.According to the CBO, businesses are likely to continue shrinking their profit margins to offset these additional costs, but they are still expected to pass around 70% of the tariffs directly to consumers.This translates into a tangible financial impact, with tariffs effectively acting as an average tax increase of approximately $1,000 per household in 2025, according to the Tax Foundation.
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cnn.comDespite the economic strain on American consumers, the White House has defended the tariff policies, citing overall economic growth and a decrease in inflation rates.Spokesperson Kush Desai claimed that the administration's economic agenda is successfully reducing costs and accelerating economic growth, even as the average tariff rate has increased significantly over the past year.
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cbsnews.comcnn.comHowever, the reality for many US households tells a different story.As inflation remains a concern, many Americans feel the pinch of rising costs in everyday goods.The tariffs on imports, designed to protect US industries, have not only failed to shield consumers from price hikes but have also contributed to a broader economic burden on the average American family.Rising prices for essential goods have led to increasing dissatisfaction among consumers, who hold the administration accountable for their financial struggles.
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cnn.comMoreover, the New York Fed's findings raise questions about the long-term sustainability of these tariff policies.Economists warn that while some sectors may benefit from broader protectionist measures, the overall economy could face negative repercussions as consumers tighten their spending due to higher costs of living.Thus, a potential reduction in economic activity and increased unemployment could arise, countering the Federal Reserve's mandate for full employment .
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taxfoundation.orgAs the situation evolves, the future of these tariffs remains uncertain.The Supreme Court is expected to make a significant ruling on the legality of Trump's tariff authority under federal emergency powers, which could dramatically alter the landscape of US trade policy.If upheld, businesses could be entitled to refunds amounting to as much as $168 billion, further complicating the economic picture for both consumers and the government.
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cbsnews.comcnn.comIn conclusion, while the Trump administration may tout the economic gains associated with tariffs, the reality is that the burden of these trade policies falls squarely on the shoulders of US consumers and businesses.As the costs of imported goods continue to rise, it becomes increasingly crucial for policymakers to consider the implications of such tariffs on the American public and the overall economy.
