President Donald Trump's tariff policies cost each American household an average of $1,000 last year, and are set to cost those households an average of $1,300 through 2026, according to new analysis.
A new review of the president's tariff policies by the Tax Foundation, a nonpartisan research group, shows that tariffs on China, Canada, Mexico and the EU "amount to an average tax increase per U.S. household of $1,000 in 2025."
If the tariffs stay in place, their costs could be equivalent to an average tax per household of $1,300 in 2026.
Because most costs are passed on to consumers, experts say the majority of tariff costs are paid by those consumers — not by foreign countries, manufacturers, importers, or other intermediaries in the supply chain.
A study last year by The Kiel Institute found similar results: Americans are paying 96% of the cost of the tariffs, while foreign exporters are absorbing about 4%. The Kiel Institute said it analyzed over 25 million shipment records from over $4 trillion in U.S. imports.
RELATED STORY | Trump warns ‘we’re screwed’ if Supreme Court strikes down his tariff authority
President Donald Trump issued a stark warning in January of this year, saying the U.S. would be “screwed” if the Supreme Court overturns his authority to impose tariffs.
The Trump administration has relied on the International Emergency Economic Powers Act, or IEEPA, as the legal basis for imposing the tariffs. During November's oral arguments, however, several justices appeared skeptical over whether the law can be used for that purpose.
The court has not yet ruled on the legality of IEEPA tariffs.
