Source: Fortune
Summary
A report by the Federal Reserve Bank of New York found that American households and businesses are paying for nearly 90% of the tariffs imposed by President Donald Trump, contradicting his claim that foreign businesses are footing the bill. The report analyzed data from the U.S. Census Bureau and Foreign Trade Statistics through November 2025. The tariffs have led to higher prices for American consumers, with consumer confidence sinking to its lowest level in over 11 years.
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The numbers tell one story. Trump’s tariffs have increased the average tariff rate from 2.6% to 13% over the course of 2025. American businesses and consumers are bearing the bulk of the economic burden, with companies like Procter & Gamble and General Motors reporting price increases and profit hits due to the levies. The Tax Foundation found that the costs of tariffs for U.S. households exceed the benefit of a tax break. The president’s claim that foreign businesses are paying for the tariffs is not supported by the data.
The strategy enters a familiar phase. Companies are passing down costs to consumers or absorbing them at the expense of their own margins. The tariffs’ impact on American businesses and consumers follows a pattern seen in the tariff impact from Trump’s first term. The burden of these levies has outweighed the benefits Trump has claimed the taxes will fund.
The announcement sounds familiar. Trump has repeatedly asserted that other countries are paying for the tariffs, but the data shows that American households and businesses are footing the bill. The president’s declaration on the tariffs’ success comes as his trade policy undergoes increased scrutiny.
Author: Evan Null
