Tariffs Cost US Households $1,000 in 2025, Study Finds

White House disputes analysis as furniture industry watches consumer spending and sentiment.

Published on Feb. 10, 2026

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A new study from the Tax Foundation found that President Trump's tariff policy cost the average American household about $1,000 in 2025, with the potential to rise to $1,300 this year. The report characterized the tariffs as the largest U.S. tax increase as a percent of GDP since 1993, suggesting the administration's trade strategy is adding pressure to household budgets at a time when many consumers remain cautious about discretionary purchases such as home furnishings.

Why it matters

For the home furnishings industry, where discretionary purchasing growth depends on consumer confidence, the added costs from tariffs could influence buying patterns, particularly if shoppers redirect spending toward essentials. The White House disputes the analysis, emphasizing broader economic indicators over the tariff price tag alone.

The details

The Tax Foundation found that the federal government collected roughly $264 billion in tariff revenue in 2025, far below the trillions cited by the White House. Analysts also concluded that the tariffs are likely to offset much of the economic benefit tied to the administration's latest tax cuts. Tariffs broadly affected products not manufactured domestically as well as imported food, leading to notable price increases for several staples. Home textiles industry executives have noted that higher import costs typically filter through supply chains, eventually reaching retail price tags.

  • The average effective US tariff rate rose from 2% in 2024 to roughly 10% in 2025, the highest since 1946.
  • The annual inflation rate stood at 2.7% in December, roughly unchanged from when President Trump took office.

The players

Tax Foundation

A nonpartisan research organization that conducted the study on the impact of tariffs on American households.

Donald Trump

The former President of the United States whose tariff policy is the focus of the study.

Kush Desai

A spokesperson for the White House who disputed the findings of the Tax Foundation report.

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What they’re saying

“America's average tariff rate has increased by nearly tenfold in the past year, while inflation has actually cooled, real wages have risen, GDP growth has accelerated, and trillions in investments continue pouring in to make and hire in America.”

— Kush Desai, White House spokesperson (ABC News)

The takeaway

The study's findings highlight the ongoing debate over the impact of tariffs on American households, with the home furnishings industry closely watching how consumer spending and sentiment may be affected by the increased costs.