\u201c[They] continue to bear the bulk of the economic burden of the high tariffs imposed in 2025.\u201d<\/p>\n
The report comes as the president\u2019s tariff regime comes under fire from a number of angles. A Supreme Court ruling on a case challenging the president\u2019s ability to impose the levies is expected imminently. On Wednesday several Republican congressmen broke with the party to back legislation that would reverse Trump\u2019s tariffs on Canada<\/a>, one of the US\u2019s most important trading partners. <\/p>\n The Trump administration has insisted that the tariffs<\/a> imposed on trading partners during the president\u2019s second term will be paid for by companies looking to export goods into the US. <\/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 Trump posted on Truth Social in August 2025, shortly before his so-called reciprocal tariffs took effect.\u00a0<\/p>\n However, others in the administration, including US Treasury secretary Scott Bessent, have acknowledged that US retailers, such as Walmart, have been\u00a0affected by the decision to raise the levies to levels last seen in the opening decades of the 20th century.\u00a0<\/p>\n The White House did not immediately respond to a request for comment on Thursday.<\/p>\n The New York Fed study suggested that in the first eight months of the year, 94 per cent of the cost had been passed through. This fell slightly to 92 per cent in the September to October period and 86 per cent in November. <\/p>\n \u201cThe tariff pass-through into import prices has declined in the latter part of the year. That is, a larger share of the tariff incidence was borne by foreign exporters by the end of the year,\u201d the authors wrote. <\/p>\n The study, which is based on customs data, did not break down how US businesses and consumers were splitting the burden. <\/p>\n Despite the pass through, the impact on consumer inflation<\/a> has been more muted than many economists had feared. Consumer price growth fell from 3 per cent in January 2025 to 2.7 per cent in December. Economists expect it to drop again on Friday, when official figures for January 2026 are released.<\/p>\n GDP figures for the first quarter of last year also showed a build-up in imports, suggesting US companies were stockpiling goods ahead of the introduction of tariffs.<\/p>\n Some Fed officials believe the impact of Trump\u2019s trade policies on US shoppers will feed through over the course of 2026 as inventories fall and companies raise their prices. But most policymakers are now confident that the impact of tariffs on inflation will prove a one-off shock, with little longer-term impact on price pressures. <\/p>\n Recommended<\/p>\n Other recent studies have made similar findings about the hit to Americans from tariffs. A report<\/a> by Germany\u2019s Kiel Institute last month found a tariff pass-through rate of 96 per cent, while a January study by the National Bureau of Economic Research put the figure at 94 per cent. <\/p>\n![\"Bar](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/02\/https:\/\/d6c748xw2pzm8.cloudfront.net\/prod\/f76f9420-081b-11f1-abeb-8117356c743f-standard.png\")
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