{"id":470085,"date":"2026-02-15T12:17:17","date_gmt":"2026-02-15T12:17:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/470085\/"},"modified":"2026-02-15T12:17:17","modified_gmt":"2026-02-15T12:17:17","slug":"94-of-economic-burden-fell-on-us-importers-ny-fed-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/470085\/","title":{"rendered":"94% Of Economic Burden Fell On US Importers, NY Fed Says"},"content":{"rendered":"\n

American businesses and consumers, rather than foreign exporters, shouldered nearly the entire financial weight of the 2025 tariffs<\/a>, according to a report released Thursday by the Federal Reserve Bank of New York.<\/p>\n

Over the course of 2025, the average U.S. tariff rate<\/a> surged from 2.6% to 13%, yet foreign prices failed to drop significantly to compensate for the hike.<\/p>\n

Economists Mary Amiti, Chris Flanagan, Sebastian Heise, and David E. Weinstein found that for the majority of the year, the \u201ceconomic burden\u201d of the tariffs did not shift abroad.<\/p>\n

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The study highlights a stark reality for domestic firms: \u201c94 percent of the tariff incidence was borne by the U.S. in the first eight months of 2025.\u201d<\/p>\n

This implies that foreign exporters largely maintained their prices, forcing American importers to pay the tax on top of the original cost of goods.<\/p>\n

As costs climbed, U.S. companies aggressively reorganized their supply chains to avoid the most heavily taxed<\/a> regions.<\/p>\n

China was the primary target of this shift; after facing duty spikes as high as 125 percentage points in early 2025, China’s share<\/a> of U.S. imports fell below 10%\u2014a historic low compared to its 25% share in 2017.<\/p>\n

Meanwhile, Mexico and Vietnam emerged as the primary beneficiaries, gaining significant market share as importers fled high-tariff Chinese goods.<\/p>\n

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The report notes that while pass-through rates cooled slightly by November\u2014dropping to 86%\u2014the overall trend remained lopsided. A 10% tariff typically resulted in only a 1.4% decline in foreign export<\/a> prices by year’s end.<\/p>\n

The researchers concluded that the promised relief from foreign price cuts never fully materialized: \u201cU.S. firms and consumers continue to bear the bulk of the economic burden of the high tariffs imposed in 2025.\u201d<\/p>\n

Ultimately, the data suggests that for every dollar collected in tariff revenue, roughly 90 cents came directly from the pockets of American businesses and their customers.<\/p>\n

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As of Thursday\u2019s close, the Dow Jones index rose 2.21% year-to-date, whereas the S&P 500 was 0.37% lower. However, the Nasdaq Composite index was down 2.75% in 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"American businesses and consumers, rather than foreign exporters, shouldered nearly the entire financial weight of the 2025 tariffs,…\n","protected":false},"author":2,"featured_media":470086,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[9807,28,218335,218336,218334,101],"class_list":["post-470085","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-american-businesses","tag-business","tag-chris-flanagan","tag-david-e-weinstein","tag-economic-burden","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/470085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=470085"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/470085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/470086"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=470085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=470085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=470085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}