In a report by the Federal Reserve Bank of New York, it was revealed that the tariffs imposed by President Donald Trump in 2025 have resulted in increased costs being predominantly borne by US consumers and companies. The average tariff rate on imports soared from 2.6% to 13%, yet exporting countries such as Mexico, China, and Canada did not reduce their goods’ prices, leading to higher costs for US importers and, consequently, shoppers. This economic burden on consumers aligns with findings from numerous research bodies, including the Kiel Institute and the Tax Foundation, which report that nearly the entire cost of tariffs has been passed on to US import prices, causing trade volumes to fall rather than prices. As a result, American households face increased yearly expenses, which offsets any economic advantages anticipated from recent tax cuts.
New York Fed report: US consumers bear almost all costs from Trump’s tariffs
