American households and businesses will absorb nearly 90% of the costs associated with U.S. President Donald Trump’s tariffs by late 2025, according to a recent analysis from the Federal Reserve Bank of New York, as reported by USA Today. This finding underscores ongoing research suggesting that U.S. families bear the brunt of the financial burden from the administration’s import duties, contradicting Trump’s repeated claims that foreign countries are primarily responsible for these costs.
A report published by the nonpartisan Tax Foundation on February 6 estimates that the tariffs could translate into nearly a $1,000 increase in taxes for each household by 2025, with anticipated additional costs of about $1,300 in 2026. This data further supports the notion that American consumers are shouldering much of the financial impact stemming from these tariffs.
Wayne Winegarden, a senior fellow in economics at the Pacific Research Institute, remarked on the findings, stating, “The study by the Federal Reserve Bank of New York confirms what most economists anticipated: U.S. consumers and businesses bear the majority of the costs from the Trump tariffs.” This assertion reflects the consensus among economists who had predicted that the tariffs would essentially act as a tax on American taxpayers rather than on foreign importers.
In conjunction with tariff implications, Trump recently proposed expanding the military budget to approximately $1.5 trillion for 2027, citing the need for enhanced national security during “troubled and dangerous times.” He expressed this vision in a post on Truth Social, emphasizing the importance of establishing a “Dream Military” to safeguard the nation. The proposed military budget for 2026 is already set at $901 billion.
Last year, the U.S. government generated $288.5 billion from tariffs and excise taxes, a sharp increase from $98.3 billion collected in 2024, according to the Bipartisan Policy Center. While this increase in tax revenue is significant, it still falls short of funding Trump’s ambitious commitments, which include taxpayer dividends, national debt reduction, and higher military spending.
This latest analysis from the Federal Reserve Bank of New York, along with the Tax Foundation report, reinforces the idea that American taxpayers will face increased financial pressures due to the administration’s tariff policies. Many economists predict that these tariffs will continue to affect consumer pricing and spending power in the years to come, challenging the administration’s narrative that the costs are primarily borne by foreign nations.
As the political discourse evolves, it remains crucial for consumers to understand the implications of these tariffs on their household finances. The reality that American families are facing a rising financial burden highlights the broader economic consequences of trade policies, which deserve careful scrutiny as they continue to shape the economic landscape in the United States.
The findings not only challenge Trump’s assertions but also raise important questions about the long-term effects of such policies on the country’s economic wellbeing. As tariffs remain a contentious topic, their impact on everyday Americans is increasingly evident, necessitating an informed public dialogue around how trade policies affect the lives of citizens.
Keywords: Trump tariffs, household costs, economic impact, Federal Reserve Bank of New York, Tax Foundation, military spending, American consumers, import duties.
Original Source: https://www.livemint.com/news/us-news/nearly-90-of-donald-trump-s-tariff-costs-fell-on-us-consumers-and-businesses-says-report-11771267350494.html
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Publish Date: 2026-02-17 00:32:00
