Trump Tariff Report Leak Causes Major Headache

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American companies and households absorbed roughly 90 percent of the financial impact from President Trump’s broad tariff policies, according to a new analysis released by the Federal Reserve Bank of New York.

The report, published Thursday, concluded that most of the added costs tied to import taxes during the first 11 months of 2025 were passed along to U.S. businesses and consumers. That finding contrasts with President Trump’s repeated assertion that foreign exporters would primarily bear the burden of the tariffs.

During the first eight months of the year, the study found that approximately 94 percent of tariff-related costs were carried domestically. In the latter part of the year, however, researchers observed a slight shift, with some foreign exporters absorbing a greater portion of the higher import duties as price adjustments filtered through global supply chains.

According to the data, the average U.S. tariff rate rose sharply in 2025 — climbing from 2.6 percent to about 13 percent — with only minor fluctuations during the year.

“U.S. firms and consumers continue to bear the bulk of the economic burden of the high tariffs imposed in 2025,” the researchers wrote in an accompanying blog post outlining the findings.

The study lands amid ongoing debate over the administration’s trade strategy. Trump has defended tariffs as a necessary tool to protect domestic industries and strengthen negotiating leverage with foreign governments. In recent weeks, he has floated additional tariff threats against Canada and several European countries before stepping back from some of those proposals.

The issue has also exposed divisions within the Republican Party. On Wednesday, six House Republicans joined Democrats in supporting a measure aimed at blocking proposed tariffs on Canada. Shortly afterward, Trump warned that GOP lawmakers who oppose his trade agenda could face political consequences in upcoming elections.

The New York Fed’s findings align with several other recent analyses indicating that more than 90 percent of tariff-related costs have ultimately been borne by American businesses and consumers, adding fresh data to a policy debate that is likely to remain central heading into the next election cycle.