American households bear 96 percent of tariff costs, driving inflation and annual expenses up by $5,200, research shows.
Recent research reveals U.S. tariffs have significantly increased consumer prices, with American importers and households absorbing 96 percent of the burden. Foreign exporters bear just 4 percent of the costs, which are passed down to retail shelves and ultimately consumers.
The average effective tariff rate surged to 7.7 percent in 2025, up from 2.4 percent in 2024, marking the highest level since 1947. Economists describe these tariffs as a regressive tax, disproportionately affecting low- and middle-income families who spend more of their income on goods.
The policies are estimated to cost the average American household up to $5,200 annually, exacerbating financial strain amid rising inflation.