• A Federal Reserve report indicates U.S. consumers paid 90% of Trump's tariffs in 2025.
• The average tariff rate surged from 2.6% to 13% during the year.
• Exporters have largely kept prices stable, passing the tariff costs onto American importers.
• Higher tariffs are projected to increase the average household costs significantly.
• Debate continues on the long-term economic impacts of these tariffs.

According to a report from the Federal Reserve Bank of New York, almost all of President Trump's tariffs imposed in 2025 were transferred to U.S. consumers and businesses, who bore the cost in the form of higher prices. Specifically, the average tariff on imports escalated to 13%, up from a mere 2.6% at the start of the year, placing an economic burden predominantly on American firms and shoppers. This contradicts the Trump administration's view that foreign producers carry the cost of these tariffs, highlighting a significant disparity in the narrative surrounding tariff impacts, according to Reuters and CBS News.

The analysis indicated that between January and August 2025, American importers absorbed 94% of the tariff costs, with this figure settling at 86% by November. Researchers found that despite the escalating tariffs, exporting countries did not lower their prices, leading to a full pass-through of the tariffs to U.S. import prices. Reports from various economic studies underscore this finding, showing that suppliers kept their pricing consistent, ultimately shifting the economic burden entirely onto American consumers, according to BBC and CBS News.

The data from the New York Fed aligns with findings from the Kiel Institute for the World Economy, which confirmed that the tariffs led to "near-complete pass-through" of costs to U.S. consumers, resulting in higher overall expenses for American households. The Tax Foundation adds that these increased tariffs have effectively functioned as a new tax on consumers, estimating a cost of $1,000 per American household in 2025, anticipated to rise to $1,300 in 2026, according to BBC and Reuters.

The political landscape surrounding these tariffs remains complex, as the Supreme Court prepares to review Trump's tariff powers and the legality of the emergency tariffs imposed. This ongoing debate touches on broader implications for U.S. trade policy and its economic consequences, emphasizing the uncertainty faced by businesses and consumers alike, according to CBS News and BBC.