--- title: "Official conclusion: The ones paying for Trump's tariffs are Americans, not foreigners" type: "News" locale: "en" url: "https://longbridge.com/en/news/275902671.md" description: "A new report from the Federal Reserve Bank of New York indicates that the burden of Trump's tariffs is primarily borne by American residents, with U.S. businesses and consumers expected to bear nearly 90% of the import tariff costs by 2025. The report shows that businesses will slightly compress profit margins to offset costs, while the majority of the tax burden (70%) will be passed on to consumers. The nonpartisan Tax Foundation estimates that tariffs will increase the tax burden by an average of $1,000 for each American household. Meanwhile, \"tariff fatigue\" is emerging in Washington, with some Republicans beginning to oppose Trump's tariff policies" datetime: "2026-02-13T12:47:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275902671.md) - [en](https://longbridge.com/en/news/275902671.md) - [zh-HK](https://longbridge.com/zh-HK/news/275902671.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/275902671.md) | [繁體中文](https://longbridge.com/zh-HK/news/275902671.md) # Official conclusion: The ones paying for Trump's tariffs are Americans, not foreigners A new report from the Federal Reserve Bank of New York confirms the long-standing warnings of economists: **the burden of tariffs is almost entirely borne by the domestic residents of the implementing country**. This simple fact — empirically demonstrated in 21st century America — is a lesson as fundamental to economics as supply and demand theory. It has always been so! The New York Fed's research found that in 2025, American businesses and consumers will bear nearly 90% of the costs of tariffs on imports that year. This is not surprising: the National Bureau of Economic Research and the Congressional Budget Office (CBO) have recently reached similar conclusions. The New York Fed's report did not break down the proportions borne by businesses and consumers, but the CBO report released on Wednesday estimated that businesses will continue to slightly compress profit margins to offset additional costs, while passing **the majority of the tax burden (70%) onto consumers**. (As for the foreign exporters that President Trump has long claimed would pay for this? The CBO estimates they bear only about 5% of the costs.) In real dollar terms, data from the nonpartisan Tax Foundation shows that tariffs in 2025 will effectively increase the tax burden by an average of $1,000 per American household. On one hand, these are merely standard academic reports published by a group of nerds, with an audience of another group of nerds. For Trump, in the face of tariffs — “the most beautiful word in the dictionary” according to him — the collective wisdom of economists has always been insignificant. However, as the CBO and New York Fed reports were released, Washington is deeply mired in “tariff fatigue.” On Wednesday, six House Republicans unusually joined Democrats in voting to effectively repeal the tariffs imposed by Trump on Canada, which is an open opposition to Trump's signature economic agenda. It should be noted that these tariffs will not be repealed — even if the bill passes in the Senate, Trump would veto it. But as expected, the “defection” from party members did not please the White House. Shortly after the vote, Trump threatened that any Republican in Congress who votes against tariffs will face “consequences.” Meanwhile, the Supreme Court may soon rule on the legality of Trump's tariffs, which could completely disrupt his entire agenda. White House spokesperson Kush DeSai defended the tariff agenda in a statement, pointing out that although “the average tariff rate in the U.S. has increased nearly sevenfold,” inflation has cooled and corporate profits have increased. “The fact is, President Trump's economic policies of tax cuts, deregulation, tariff increases, and energy abundance are lowering costs and accelerating economic growth,” he stated. Of course, all of this is happening while ordinary Americans are fuming over skyrocketing living costs and increasingly blaming Trump and the Republicans. Trump's campaign promise to “lower prices on day one” has not been fulfilled (Apart from a few products like eggs — we can consider this a win for him, mainly because farmers have worked hard to curb the avian flu that has led to tight egg supply and soaring prices.) From the data, the U.S. economy is performing well. This is largely because the economy is measured by averages and totals. Take the January employment report released on Wednesday as an example. Overall, the data is exceptionally strong, with 130,000 new jobs added, nearly double what economists expected. However, a closer look reveals that almost all job growth comes from the healthcare sector. Further analysis shows that all other sectors are either struggling to grow or experiencing job losses. In fact, for the entire year of 2025, the healthcare and social assistance sector contributed 97% of all job growth. This is exactly what KPMG economist Diane Swonk refers to as a typical case of the "one-legged stool" supporting the entire economy. The other two "one-legged stools" are: the extravagant consumption of the wealthy and the hundreds of billions of dollars invested by tech giants in artificial intelligence infrastructure ## Related News & Research - [How to interpret the wild swings in the jobs numbers](https://longbridge.com/en/news/281681321.md) - [12:30 ETLOUISIANA FISH FRY LAUNCHES NEW VIDEO SERIES WITH EMERIL LAGASSE AND TROMBONE SHORTY CELEBRATING CAJUN FLAVOR](https://longbridge.com/en/news/281652235.md) - [Trump weighs broader cabinet shake-up as Iran war pressure grows](https://longbridge.com/en/news/281681817.md) - [12:26 ETOdevo deepens Texas presence as WRMC joins](https://longbridge.com/en/news/281652151.md) - [Omeros Turns Corner With Novo Deal, YARTEMLEA Launch](https://longbridge.com/en/news/281666535.md)