Story perspectives

Tariffs Cost U.S. Consumers 90% of Economic Burden

2/18/2026

Summary

Businesses Bear Tariff Burden

The Federal Reserve Bank of New York finds that U.S. businesses and consumers bear nearly 90% of the economic burden from tariffs enacted under U.S. President Donald Trump.
The average tariff rate on imports rose from 2.6% to 13% in 2025.
Studies indicate that 94% of tariff costs initially fall on U.S. importers and consumers.
The tariffs are projected to slow economic growth and raise prices across sectors.

Summary

Trump Confronts Oil Executives

U.S. President Donald Trump faces oil executives' skepticism about his $100 billion plan to rebuild Venezuela's oil industry.
Despite capturing Nicolás Maduro, the ongoing military presence costs $31 million daily, totaling over $11 billion annually.
Analysts warn that without a clear rationale for military actions, investor confidence in U.S. Treasuries may decline.
The focus on peace through strength is under scrutiny as taxpayer-funded military support for foreign investments raises concerns.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs to about 47%, exacerbating the Great Depression by provoking international retaliation and reducing global trade. In 2025, President Donald Trump implemented a series of steep tariffs, raising the average effective rate to 27%, echoing past protectionist policies. This historical context highlights the potential long-term economic consequences of high tariffs on domestic markets and international relations.

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Businesses Bear Tariff Burden

The Federal Reserve Bank of New York finds that U.S. businesses and consumers bear nearly 90% of the economic burden from tariffs enacted under U.S. President Donald Trump.
The average tariff rate on imports rose from 2.6% to 13% in 2025.
Studies indicate that 94% of tariff costs initially fall on U.S. importers and consumers.
The tariffs are projected to slow economic growth and raise prices across sectors.

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