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New Study: Tariffs Hit Americans Hard, Not Foreigners

2/14/2026

28 4 Full Breakdown

Summary

Tariffs Burden Americans

A Federal Reserve Bank of New York analysis finds 90% of tariffs' costs fall on American consumers and businesses, contradicting U.S. President Donald Trump's claim that foreign entities pay.
The average tariff rate rose from 2.6% to 13% in 2025, with importers paying 94% of costs in eight months and 86% by November.
The Supreme Court's ruling could affect federal revenue and trade policy.

Summary

Inflation Eases Gradually

Inflation fell to 2.4% in January, down from 2.7% in December, helped by apartment-rent growth and lower gas prices.
Core prices rose 2.5%, the smallest increase since March 2021.
Food prices, especially groceries, rose 0.2% in January.
U.S. President Donald Trump’s administration rolled back tariffs on food items to ease consumer costs.
Economists expect inflation to approach the Federal Reserve’s 2% target by late 2026, enabling further rate cuts.

History

Historical Context

The Smoot-Hawley Tariff Act, enacted on June 17, 1930, raised U.S. tariffs to an average of 60%, aiming to protect American industries during the Great Depression. This led to retaliatory tariffs from trading partners, significantly reducing international trade and exacerbating economic decline. By 1933, U.S. exports plummeted from $5.2 billion in 1929 to $1.7 billion, illustrating the act's detrimental impact.

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Tariffs Burden Americans

A Federal Reserve Bank of New York analysis finds 90% of tariffs' costs fall on American consumers and businesses, contradicting U.S. President Donald Trump's claim that foreign entities pay.
The average tariff rate rose from 2.6% to 13% in 2025, with importers paying 94% of costs in eight months and 86% by November.
The Supreme Court's ruling could affect federal revenue and trade policy.

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