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US Firms And Consumers Bear Brunt Of Trump Tariffs, NY Fed Says. New research from the Federal Reserve Bank of New York finds that US companies and consumers are paying most of the cost of Donald Trump's tariffs. According to the report, the average tariff rate on imported goods rose sharply in 2025, climbing to 13% from just 2.6% at the start of the year. The analysis concludes that around 90% of the added costs from tariffs on goods from Mexico, China, Canada, and the European Union were absorbed domestically. Exporting countries did not significantly lower their prices to offset the tariffs. Instead, US importers paid more and passed those higher costs on to shoppers. The findings echo patterns seen in 2018 during Trump’s first term, when earlier tariffs also led to higher consumer prices with limited broader economic impact. The New York Fed says US firms and households continue to shoulder the bulk of the economic burden created by the 2025 tariff increases.
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