American businesses and consumers bore the brunt of the financial burden of the 2025 tariffs, according to a Federal Reserve Bank of New York report. The U.S. tariff rate jumped from 2.6% to 13%, with foreign prices failing to decrease significantly. Domestic firms shouldered 94% of the tariff incidence in the first eight months of 2025.

As costs rose, U.S. companies reorganized supply chains to avoid heavily taxed regions, primarily targeting China. China’s share of U.S. imports dropped below 10% in 2025, while Mexico and Vietnam saw increased market share. The promised relief from foreign price cuts did not materialize, with U.S. firms and consumers bearing the brunt of the high tariffs.

Despite a slight drop in pass-through rates by November, the overall trend remained skewed. A 10% tariff typically led to a mere 1.4% decline in foreign export prices by year’s end. For every dollar collected in tariff revenue, roughly 90 cents came directly from American businesses and customers. The Dow Jones index rose 2.21% year-to-date, while the S&P 500 was 0.37% lower, and the Nasdaq Composite index dropped by 2.75% in 2026.

Read more at Yahoo Finance: 94% Of Economic Burden Fell On US Importers, NY Fed Says