Research conducted by the New York Federal Reserve and Columbia University found that 90% of the tariffs levied on imports by the Trump administration were ultimately paid by American businesses and consumers. This finding contradicts claims made by former President Trump, who suggested that most of the tariff burden would be passed on to foreign producers and companies. In fact, the study highlighted that from January to August of 2022, American importers bore 94% of these tariffs, with minor variations observed in November, but the vast majority still fell on American shoulders.

Furthermore, the same research examined the impact of tariffs during Trump's first term, concluding that the increases in tariffs in 2018 and 2019 were completely passed on to American businesses and consumers. The New York Times noted that many companies stockpiled inventory ahead of tariff implementation, yet as these inventories run out, it is anticipated that consumer prices will inevitably rise, hence shifting the burden to the end consumers. This aligns with findings from the Congressional Budget Office, which predicted that about 70% of the tariff burden would be passed on to American consumers through price increases, while the remaining 30% would be absorbed by companies as reduced profit margins.

As the Trump administration embarked on substantial tax cuts for corporations, the criticism from bipartisan think tanks regarding the imposition of tariffs as a form of taxation on American consumers is growing. The Tax Foundation recently reported the implications of such policies, indicating that the cumulative effects of tariffs are effectively combining to impose a new economic burden on U.S. consumers, challenging the narrative of tax relief promoted by the administration.