90% of Trump's tariffs are paid for by American consumers and companies, New York Fed says

Fortune • February 13, 2026 • business

Key Points:

A Federal Reserve Bank of New York report found that nearly 90% of U.S. tariffs in 2025 were paid by American firms and consumers, with the burden highest early in the year and slightly decreasing by November.
Despite a fivefold increase in average tariff rates from 2.6% to 13%, foreign exporters only modestly lowered prices, causing U.S. businesses and consumers to absorb or pass on the increased costs.
Former President Trump has claimed tariffs are paid by foreign producers, but data from multiple studies, including Harvard Business School and the Kiel Institute, contradict this, showing that U.S. buyers bear the vast majority of the tariff costs.
The tariffs have contributed to rising consumer prices and declining