Americans shouldered nearly 90% of the $264 billion in tariff costs, says N.Y. Federal Reserve Bank

The Federal Reserve Bank of New York found that U.S. consumers and businesses paid nearly 90% of the roughly $264 billion in tariff revenue collected in 2025. 

Despite President Trump saying other countries would absorb tariff costs, foreign exporters did not lower their prices, according to the bank’s report, which was released recently. 

A report from the nonpartisan Tax Foundation estimated the sharp rise in tariffs on U.S. imports resulted in higher prices for consumers and a tax increase on American businesses and households. 

“In 2026, Trump’s tariffs will increase federal tax revenues by $171.1 billion, or 0.54 percent of GDP, making the tariffs the largest tax hike since 1993,” the foundation reported, referring to the gross domestic product.

The report says the tariffs would reduce U.S. economic output and slow GDP growth over time.