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Washington, D.C.: New studies have revealed the staggering financial toll of President Donald Trump’s tariff policies, showing that American households and businesses are paying nearly the entire bill.
Americans Paying the Price
A report from the Kiel Institute for the World Economy found that 96% of the cost of Trump’s tariffs is borne by U.S. importers and consumers, as higher duties lead to higher prices for everyday goods.
According to the Tax Foundation, the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and Section 232 of the Trade Expansion Act are estimated to cost every American an average of $1,000 in 2025. If current policies continue, this per capita cost is projected to increase to $1,300 in 2026.
Largest Tax Increase in Decades
The Tax Foundation described Trump’s tariffs as “the largest U.S. tax increase as a per cent of GDP (0.54% in 2026) since 1993.” The average effective tariff rate has surged from 2% in 2024 to around 10% in 2025, the highest level since 1946.
Billions Raised, But Who Paid?
While the administration touts tariffs as a revenue generator, the numbers tell a different story. The Tax Foundation calculated that tariffs netted the federal government $132 billion in 2025, bringing the total to $246 billion in customs duties and tariffs that year.
Trump claimed in a Wall Street Journal op-ed that tariffs raised $18 trillion, while the White House cited $9.6 trillion. Independent assessments show these are vastly inflated.
Economic Drag
Experts warn that tariffs are undermining the potential of recent tax reforms. “Tariffs are really holding back the potential of the new tax law, both to deliver relief to taxpayers and to grow the economy,” said Erica York, Vice President of Federal Tax Policy at the Tax Foundation.
The Outlook
With costs rising and the credibility of revenue claims in question, analysts say the hidden cost of Trump’s tariffs is becoming impossible to ignore. For ordinary Americans, the policy has effectively become a stealth tax, eroding household budgets and business competitiveness alike.
