White House Criticizes Fed Research on Tariffs

Administration disputes findings that US consumers bear brunt of trade war costs

Feb. 26, 2026 at 6:39pm

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The White House has opened a new front in its ongoing feud with the Federal Reserve, this time over recent economic research from the Federal Reserve Bank of New York that found American households and businesses are bearing nearly 90% of the cost of President Trump's tariffs, contrary to the administration's claims that foreigners will pay.

Why it matters

The White House's defensive reaction to the Fed's research highlights the political sensitivity around the economic impact of the administration's trade policies, which have been a central part of President Trump's agenda. The findings challenge the president's narrative that tariffs are an economic and political winner for the US.

The details

The analysis from four economists at the Federal Reserve Bank of New York found that American consumers and businesses are paying the vast majority of the costs of the Trump administration's trade war through higher prices. This contradicts the president's repeated claims that foreign countries are footing the bill for the tariffs.

  • The Fed research was published in February 2026.

The players

Federal Reserve Bank of New York

A regional reserve bank within the Federal Reserve System that conducts economic research and helps implement monetary policy.

Donald Trump

The 45th President of the United States, who has pursued an aggressive trade policy including the imposition of tariffs on imports.

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The takeaway

The White House's pushback against the Fed's research on the costs of tariffs highlights the political sensitivity around the economic impact of the administration's trade policies, which have been a central part of President Trump's agenda. The findings challenge the president's narrative that tariffs are an economic and political winner for the US.