90% of Trump’s tariffs are paid for by American consumers and companies, New York Fed says

Fortune

by Sasha Rogelberg

February 13, 2026

AI-Generated Deep Dive Summary

The New York Federal Reserve has released data showing that American consumers and businesses are bearing the brunt of President Donald Trump's tariffs. Despite Trump's claims that foreign companies and exporters are primarily paying the costs, a report reveals that U.S. entities paid nearly 90% of the tariffs in 2025. This includes 94% of tariffs from January to August and 86% in November. The study highlights how increased tariffs have shifted the economic burden heavily onto domestic firms and consumers, leading to higher prices for goods. The report attributes this shift to the way tariffs are applied. If foreign companies were absorbing the costs, they would likely lower their prices to maintain competitiveness in the U.S. market. However, data shows minimal price adjustments from exporters, forcing U.S. businesses to either absorb the costs or pass them on to consumers. This dynamic has significantly impacted inflation rates, with tariffs contributing 0.76% to the Consumer Price Index by October 2025. While Trump maintains that his trade policies are successful and beneficial for the economy, critics argue otherwise. Tariffs have led to higher prices for everyday goods, which has hurt consumer confidence. In January 2024, consumer confidence reached its lowest point in over a decade, with tariffs cited as a key factor. Additionally, businesses facing increased costs are struggling to maintain profitability, and some are calling for the reversal of these policies. The ongoing legal battles and political scrutiny surrounding Trump's trade policies further complicate the issue. The House of Representatives has moved to overturn certain tariffs, while the Supreme Court is set to rule on their legality under the International Emergency Economic Powers Act. These developments underscore the growing debate over whether Trump's economic agenda, including tariffs, has truly delivered on its promises. Ultimately, the New York Fed report aligns with previous studies showing that U.S. businesses and consumers are bearing the majority of the tariff burden. This not only impacts everyday prices but

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Originally published on Fortune on 2/13/2026