A new Federal Reserve Bank of New York report reveals that U.S. consumers and businesses bore nearly 90% of the costs from tariffs imposed during the Trump administration, challenging earlier assertions that foreign exporters would absorb the financial impact. Released on February 12, 2026, the study highlights how average U.S. tariff rates surged from 2.6% to 13% in 2025, with domestic buyers shouldering the majority of the burden.
Between January and August 2025, U.S. entities absorbed 94% of tariff costs, followed by 92% from September to October and 86% in the final two months of the year. The report underscores that foreign exporters did not significantly lower prices during this period, effectively passing nearly 100% of tariff-related expenses to U.S. importers and consumers.
These findings align with a Congressional Budget Office (CBO) analysis released earlier this week, which estimated that foreign exporters bore only 5% of tariff costs, while U.S. businesses and consumers absorbed 30% and 70%, respectively. The CBO attributed rising consumer prices directly to tariff-driven increases in imported goods.
While tariffs remain a cornerstone of former President Trump’s economic strategy—aimed at boosting government revenue and reshoring manufacturing—the policy has fueled market volatility and economic uncertainty. Analysts warn that prolonged trade adjustments could ripple through Asian supply chains, affecting regional exporters and global investors.
For Asia-focused stakeholders, the report underscores the need to monitor U.S. trade policy shifts, particularly as businesses navigate cross-border pricing strategies and supply chain resilience in 2026.
