In a report published on February 12, 2026, by the Federal Reserve Bank of New York, it has been concluded that Americans are largely responsible for the financial burden of tariffs implemented under President Donald Trump. The report indicates that 90% of the tariffs on imported goods are paid by U.S. consumers and companies, contradicting the administration's claims that these fees are primarily absorbed by foreign exporters.

The average tariff rate surged dramatically over the past year, climbing from 2.6% to 13%. The report's authors noted that during the first eight months of 2025, American consumers bore 94% of the tariffs, which then decreased slightly to 92% from September to October, settling at 86% by November.

The study highlights the lack of price adjustments from foreign exporters, pointing out that they did not lower their prices to offset the tariffs. Instead, U.S. companies either absorbed the increased costs or passed them directly to consumers through higher prices. This pattern has been consistent since the tariffs first began, leading to a widespread increase in living costs for Americans.

Federal Reserve officials have expressed concerns that the tariffs have contributed to rising inflation, complicating monetary policy decisions, especially after previous rate cuts. While there are expectations that the impact of tariffs may diminish, officials believe they will still represent a long-term increase in living expenses.

The report also coincides with a resolution from the House of Representatives aiming to eliminate some of these tariffs, amid growing scrutiny over their economic implications. The Supreme Court is anticipated to rule on the legality of Trump's tariffs soon, which could significantly alter the fiscal landscape moving forward.

Overall, this Fed report underscores how trade policies have direct repercussions on American households and the broader economy, highlighting a disconnect between political rhetoric and economic reality.