Hold onto your wallets, folks! A New York Fed report dropped this week with a reality check: U.S. consumers and businesses are footing nearly 90% of the bill for tariffs imposed during the Trump era. 💥 Spoiler alert: Foreign exporters aren’t paying up like some claimed.
Tariffs skyrocketed from 2.6% to 13% last year, and guess who felt the squeeze? 🇺🇸 American buyers absorbed a jaw-dropping 94% of the costs early in 2025, with the burden barely easing to 86% by year-end. The Fed found foreign sellers didn’t lower prices, passing almost 100% of the hit to U.S. importers. Ouch. 💼
This week’s Congressional Budget Office (CBO) analysis echoed the pain: only 5% of costs fell on foreign shoulders, while U.S. businesses swallowed 30%, and consumers got stuck with 70% via pricier goods. 📈 Think: higher tags on everything from electronics to sneakers.
While tariffs were pitched as a tool to boost revenue and reshore jobs, the report highlights a rollercoaster of market volatility and economic uncertainty. 🎢 For young professionals and shoppers, this means tighter budgets and trickier financial planning in 2026. 💡 Pro tip: Keep an eye on trade policy updates—they’re hitting closer to home than ever.
