US consumers, business pay 90% of tariff costs, says Federal Reserve

Recent findings from the Federal Reserve indicate that nearly 90% of the financial impact from tariffs imposed during Donald Trump's presidency fell on American consumers and businesses. This research, conducted by the New York Fed, challenges the former president's assertion that foreign companies would absorb these costs. The study highlights that in the first 11 months of 2025, the majority of the tariff burdens were passed directly to Americans, although the share paid by exporters began to increase as the year wore on. The authors of the report emphasized, "Our results show that the bulk of the tariff incidence continues to fall on US firms and consumers," underscoring the significant economic strain placed on the domestic market. Despite Trump's claims that these tariffs would benefit the US economy, stating that "BILLIONS OF DOLLARS... WILL START FLOWING INTO THE USA," reality paints a different picture. Acknowledgment from other administration officials, including US Treasury Secretary Scott Bessent, reveals that retailers such as Walmart have faced serious repercussions from the tariff increases, which have reached levels not seen since the early 1900s.