Trump Tariffs Backfired: 94% Of Economic Burden Fell On US Importers, NY Fed Says

American businesses and consumers, rather than foreign exporters, shouldered nearly the entire financial weight of the 2025 tariffs, according to a report released Thursday by the Federal Reserve Bank of New York. Domestic Burden Over the course of 2025, the average U.S. tariff rate surged from 2.6% to 13%, yet foreign prices failed to drop significantly to compensate for the hike. Economists Mary Amiti, Chris Flanagan, Sebastian Heise, and David E. Weinstein found that for the majority of the year, the ...