US business, consumers bore 90 percent of Trump tariff costs: NY Fed

The Hill

by Fiona Bork

February 13, 2026

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US business, consumers bore 90 percent of Trump tariff costs: NY Fed

The U.S. Federal Reserve Bank of New York has revealed that American businesses and consumers absorbed nearly 90% of the costs associated with former President Donald Trump’s tariffs. These tariffs, implemented during his tenure, were designed to protect domestic industries but ended up placing a significant financial burden on everyday Americans and companies. The study highlights how the majority of these costs were passed directly onto consumers through higher prices for goods and services in the first 11 months of implementation. The report underscores that while Trump’s tariffs targeted foreign imports, particularly from China, U.S. businesses and workers bore the brunt of the economic impact. Many companies raised their product prices to offset the added costs of importing materials, which ultimately translated into higher expenses for consumers. This approach to trade policy, though intended to reduce reliance on foreign goods, ended up creating challenges for domestic industries that relied on global supply chains. The findings also raise questions about the effectiveness of protectionist trade policies in safeguarding American jobs and economic stability. While some industries benefited from the tariffs, many others faced disruptions, leading to job losses and operational difficulties. The study’s conclusions are particularly relevant for

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Originally published on The Hill on 2/13/2026