New York Fed: Americans Paid Nearly 90% of Trump’s 2025 Tariffs

In Brief

Analysis shows U.S. consumers and companies bore most costs of Trump-era tariffs in 2023.

Key Facts

• Nearly 90% of the costs from the Trump administration's 2025 tariffs were paid by Americans in 2023
• The New York Federal Reserve conducted the analysis confirming the distribution of tariff costs
• U.S. companies and consumers, not foreign exporters, primarily bore the financial burden of the tariffs
• This finding contradicts former President Trump’s claims that foreign exporters would pay the tariffs
• The tariffs were imposed during the Trump administration and continued to affect trade in 2023

What Happened

A recent analysis by the New York Federal Reserve found that nearly 90% of the costs from the Trump administration's 2025 tariffs were borne by Americans in 2023. Contrary to claims by former President Trump, the financial burden fell mainly on U.S. companies and consumers rather than foreign exporters. This research highlights the domestic economic impact of the tariffs imposed during the Trump administration.

Why It Matters

Understanding who bears the cost of tariffs is crucial for evaluating trade policy effectiveness and its impact on the domestic economy. The findings suggest that tariffs intended to protect U.S. industries may instead increase costs for American consumers and businesses. This insight informs ongoing discussions about trade strategies and economic policy decisions.