NEW YORK, New York — U.S. businesses and consumers absorbed about 90% of the cost of President Donald Trump’s tariffs in 2025, according to a new report from the Federal Reserve Bank of New York.
The study found that during the first 11 months of 2025, most tariff-related costs were passed on to American importers and shoppers rather than foreign exporters. In the first eight months of the year, consumers and businesses bore approximately 94% of the burden. Researchers noted that the pass-through rate declined later in the year, meaning foreign exporters began absorbing a somewhat larger share of the costs.
The average tariff rate rose from 2.6% to 13% throughout 2025, with only brief fluctuations. The researchers concluded that “U.S. firms and consumers continue to bear the bulk of the economic burden of the high tariffs imposed in 2025.”
Trump has argued that foreign companies would pay the import taxes. The findings align with prior economic research indicating that tariffs are typically paid largely by domestic buyers.
The report comes as some House Republicans have moved to block new tariff proposals on Canada, drawing criticism from the president.
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