NY Fed: U.S. Firms, Consumers Bear Most 2025 Tariff Costs
New York Fed says average U.S. tariff rose to 13% in 2025 and roughly 90% of the increase was paid by U.S. firms and consumers, with $287 billion collected.
Overview
The Federal Reserve Bank of New York said roughly 90% of the increased tariff costs in 2025 were paid by U.S. firms and consumers.
The report followed an increase in the average U.S. tariff on imports to 13% in 2025 from 2.6% at the year's start, and other studies found near-complete pass-through and collapsing trade volumes.
White House spokesperson Kush Desai defended the tariffs and touted economic gains, and the Tax Foundation said tariffs cost the average household $1,000 in 2025 and $1,300 in 2026.
The Treasury collected $287 billion in tariffs in 2025 and the University of Pennsylvania's Wharton School said the government could owe up to $168 billion in refunds if the tariffs are struck down.
The Supreme Court is expected to rule soon on the administration's authority to impose tariffs under a federal emergency powers law.
Analysis
Center-leaning sources frame the story as a mounting rebuke of Trump's tariff policy by foregrounding the NY Fed finding that US consumers bore 90% of costs, citing FT and NYT language that 'undermine' the president and call the move a 'politically consequential rebuke', and emphasizing legal and international pushback while omitting supportive voices.
Sources (3)
FAQ
The average U.S. tariff rate on imports increased from 2.6% at the start of 2025 to 13% by the end of the year.
Roughly 90% of the increased tariff costs were paid by U.S. firms and consumers.
The Treasury collected $287 billion in tariffs in 2025.
The Tax Foundation estimates tariffs cost the average household $1,000 in 2025 and $1,300 in 2026.
The Supreme Court is expected to rule soon on the administration's authority to impose tariffs under a federal emergency powers law, with potential refunds up to $168 billion if struck down.
History
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