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Americans are paying the bill for tariffs, despite Trump’s claims
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US companies and consumers are paying most of the cost of the tariffs, in the form of higher prices.
PHOTO: MARK ABRAMSON/NYTIMES
Ana Swanson and Sydney Ember
- New York Fed research found 90% of Trump's tariff costs fell on US companies and consumers through November 2025, disproving claims that foreign nations largely paid.
- Larger US firms managed tariffs through negotiations or diversification, while smaller businesses, lacking clout and margins, often raised prices or risked failure.
- Tariffs increased US import prices by 11% but overall price rises were lower than expected. Although foreign suppliers bore more cost later, 86% still passed to the US.
AI generated
US President Donald Trump has frequently claimed that foreign countries were paying for his tariffs, not Americans. But as economists predicted, that is largely turning out not to be the case.
Research published on Feb 12 by economists at the Federal Reserve Bank of New York and Columbia University suggests that, through November 2025, 90 per cent of the economic burden of the President’s tariffs fell on US companies and consumers.
