{"id":474671,"date":"2026-02-14T15:13:17","date_gmt":"2026-02-14T15:13:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/474671\/"},"modified":"2026-02-14T15:13:17","modified_gmt":"2026-02-14T15:13:17","slug":"us-consumers-businesses-bore-about-90-of-trumps-tariffs-ny-fed-study-finds","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/474671\/","title":{"rendered":"US consumers, businesses bore about 90% of Trump\u2019s tariffs, NY Fed study finds"},"content":{"rendered":"

US businesses and consumers paid about 90% of the cost of President Donald Trump\u2019s sweeping tariffs last year \u2014 contradicting his repeated claims that foreign countries were footing the bill, according to a new study from the Federal Reserve Bank of New York.<\/a><\/p>\n

In the first eight months of 2025, 94% of the cost of tariffs was borne by American businesses and consumers, study found.<\/p>\n

In September and October, that share slipped to 92%, and in November it fell further to 86% as foreign exporters picked up a larger share of the costs, according to the report.<\/p>\n

A new Federal Reserve Bank of New York study found that nearly 90% of the cost of President Trump\u2019s 2025 tariffs was borne by US firms and consumers. Serhii \u2013 stock.adobe.com<\/p>\n

\u201cOur results show that the bulk of the tariff incidence continues to fall on US firms and consumers,\u201d the authors of the study wrote in a blog post. \u201c[They] continue to bear the bulk of the economic burden of the high tariffs imposed in 2025.\u201d<\/p>\n

Trump has insisted foreign nations have been baring the brunt of the costs.<\/p>\n

\u201cBillions of dollars, largely from countries that have taken advantage of the United States for many years, laughing all the way, will start flowing into the USA,\u201d he wrote August on Truth Social in all-caps.<\/p>\n

In responding to the New York Fed study, White House spokesperson Kush Desai told the Financial Times: \u201cAmerica\u2019s average tariff rate has increased nearly sevenfold in the past year \u2014 yet inflation has cooled and corporate profits have increased.<\/p>\n

\u201cThe reality is that President Trump\u2019s economic agenda of tax cuts, deregulation, tariffs and energy abundance are reducing costs and accelerating economic growth,\u201d he added.<\/p>\n

The findings come as Trump is weighing a rollback of some steel and aluminum tariffs<\/a> amid mounting political pressure ahead of November\u2019s midterm elections, according to the Financial Times.<\/a><\/p>\n

The New York Fed reported that 94% of tariff costs fell on US importers in the first eight months of 2025. Nomad_Soul \u2013 stock.adobe.com<\/p>\n

The president imposed duties of up to 50% on metal imports last summer and later expanded the levies to a wide range of products made from those materials, including household appliances and cars.<\/p>\n

Administration officials are now reviewing which goods could be exempted and are expected to halt further expansion of the tariff list, the FT reported.<\/p>\n

Instead, they would shift toward more targeted national security investigations when determining which duties should remain in place.<\/p>\n

The metals tariffs have pushed average US import duties to their highest levels in decades and triggered backlash from some Republican lawmakers, who have joined Democrats in supporting legislation to overturn certain levies.<\/p>\n

\u201cThe data from the New York Fed kills the myth that foreign adversaries are subsidizing this trade war,\u201d said Dean Lyulkin, founder of The Dean\u2019s List.<\/p>\n

\u201cIt\u2019s no surprise the administration is pumping the brakes as voters prepare to head to the ballot box.\u201d<\/p>\n

Lyulkin said that the US \u201cslapped a 50% tax on materials used for everything from beer cans to washing machines, expecting to shield domestic industry from competition, but the pressure campaign backfired into an affordability problem.\u201d<\/p>\n

The findings come as the White House considers easing certain steel and aluminum tariffs amid political pressure ahead of the midterms. AFP via Getty Images<\/p>\n

\u201cNow we\u2019re seeing a retreat before inflation further impacts the middle class and the midterm elections.\u201d<\/p>\n

The Supreme Court has been weighing Trump\u2019s tariffs, though the White House reportedly has a plan B to keep the levies in place<\/a> if the legal justification for the current regime is deemed unconstitutional.<\/p>\n

Supporters of the tariff strategy point to the surge in federal revenue as a clear win.<\/p>\n

The US collected $30 billion in customs duties in January alone<\/a>, bringing the fiscal year-to-date total to $124 billion \u2014 a 304% increase from the same period a year earlier.<\/p>\n

For calendar year 2025, tariff collections reached $287 billion, nearly tripling the previous year\u2019s haul, while the Tax Foundation projects the levies will raise $171.1 billion in 2026, making them the largest tax increase since 1993.<\/p>\n

The January deficit fell 26% year over year, with the fiscal year-to-date gap down 17%, underscoring the revenue impact.<\/p>\n

( @realDonaldTrump<\/a> \u2013 Truth Social Post )
( Donald J. Trump \u2013 Aug 6, 2025, 11:44 PM ET )<\/p>\n

RECIPROCAL TARIFFS TAKE EFFECT AT MIDNIGHT TONIGHT! BILLIONS OF DOLLARS, LARGELY FROM COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS, LAUGHING ALL THE WAY, WILL START\u2026 pic.twitter.com\/0QRX1AxLqp<\/a><\/p>\n

\u2014 Fan Donald J. Trump \ud83c\uddfa\ud83c\uddf8 TRUTH POSTS (@TruthTrumpPosts) August 7, 2025<\/a><\/p>\n

Backers of tariffs also argue that the levies have spurred domestic investment and supply-chain diversification.<\/p>\n

Stellantis has pledged $13 billion over four years for US factories, Toyota committed $10 billion over five years, and Mercedes shifted SUV production to Alabama.<\/p>\n

Beyond the auto sector, Apple announced $600 billion in US investment, TSMC committed $165 billion to semiconductor plants in Arizona, and Hyundai pledged $26 billion, including a new Louisiana steel facility.<\/p>\n

Meanwhile, China\u2019s share of US imports has fallen below 10% in 2025, down from nearly 25% in 2017, as Mexico and Vietnam gained ground \u2014 a shift advocates say reduces dependence on a single foreign supplier.<\/p>\n

The Post has sought comment from the White House.<\/p>\n

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