Report: Americans, Not Foreigners, Paying for Trump's Tariffs

New analysis shows US consumers and businesses bearing brunt of import taxes

Published on Feb. 12, 2026

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A new report from the Federal Reserve Bank of New York confirms that the burden of tariffs imposed by the Trump administration is being borne almost entirely by American consumers and businesses, not foreign exporters as the former president had claimed. The analysis found that US entities paid for nearly 90% of 2025's import taxes, with businesses passing on about 70% of the costs to consumers.

Why it matters

This report underscores the economic reality that tariffs, which are essentially taxes on imports, are paid by the citizens of the country imposing them, not the exporting countries. It contradicts the narrative pushed by the Trump administration and challenges the rationale for his protectionist trade policies, which have faced growing bipartisan opposition in Congress.

The details

The New York Fed report found that US businesses and consumers paid for nearly 90% of 2025's import taxes. A separate analysis by the Congressional Budget Office estimated that businesses would shrink their margins slightly to offset the extra costs, while passing on about 70% of the tariffs to consumers. The tariffs amounted to an average tax increase of $1,000 per US household in 2025, according to the non-partisan Tax Foundation.

  • The New York Fed report was released in February 2026.
  • The Congressional Budget Office report was published in February 2026.

The players

Federal Reserve Bank of New York

A regional reserve bank of the United States Federal Reserve System that conducts economic research and analysis.

National Bureau of Economic Research

A private, non-profit, non-partisan organization that conducts economic research.

Congressional Budget Office

A federal agency that provides budget and economic information to Congress.

Donald Trump

The former President of the United States who implemented a series of tariffs on imports during his administration.

Tax Foundation

A non-partisan tax policy research organization.

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What’s next

A Supreme Court ruling on the legality of Trump's tariffs is expected soon, which could have major implications for the future of his trade agenda.

The takeaway

This analysis further undermines the rationale for the Trump administration's protectionist trade policies, which have faced growing bipartisan opposition in Congress. It highlights how American consumers and businesses, not foreign exporters, have borne the brunt of the tariffs, contradicting the former president's claims.