President Trump’s Tariffs Cost Average American Household $1,000 Last Year, New Research Finds
WASHINGTON — President Donald Trump’s trade policies resulted in an estimated additional expense of $1,000 for the average U.S. household over the course of 2025, according to a new analysis released this week by the nonpartisan Tax Foundation.
The report offers one of the first comprehensive retrospective looks at the economic impact of the administration’s renewed tariff strategy since its implementation. According to the findings, the effective tax rate on imported goods surged from approximately 2 percent in 2024 to nearly 10 percent in 2025, marking the highest level seen in the United States since 1946.
Researchers at the Tax Foundation warn that the financial burden on American families could intensify in the current year. The study projects that if the current tariff schedules remain unchanged, the average household cost could rise to $1,300 in 2026. “These tariffs represent the most significant U.S. tax increase relative to GDP since 1993,” the report states, noting that the levies have effectively offset many of the economic benefits provided by earlier tax legislative adjustments.
The analysis highlights that while tariffs are technically paid by importing businesses at the border, the costs are frequently passed down to consumers in the form of higher retail prices. The report points to specific inflationary pressures on goods heavily reliant on global supply chains. Throughout 2025, price increases were notably sharp in sectors such as electronics, toys, and certain food products. The Bureau of Labor Statistics data cited in the context of the trade shifts showed significant spikes in commodities like coffee, which rose over 30 percent, and ground beef, which saw a nearly 20 percent increase.
Despite the administration’s projections that tariffs would generate trillions in revenue to offset the national debt, the Tax Foundation found that the federal government collected approximately $132 billion from these duties in 2025.
The White House has pushed back against the characterization that the tariffs are a net negative for the economy. In a statement responding to the figures, White House spokesperson Kush Desai argued that the broader economic picture remains strong. “The average U.S. tariff rate has increased, yet inflation has eased, real wages have grown, and GDP expansion has picked up,” Desai said, emphasizing the administration’s focus on incentivizing domestic manufacturing and hiring.
However, the Tax Foundation’s analysis suggests that the tariffs are acting as a drag on these gains by reducing purchasing power. The organization estimates that the tariffs introduced a drag on the economy that, while not causing a recession, has dampened the potential growth of real incomes for the median family.
As the debate over trade policy continues into the midterm election cycle, these findings are likely to become a focal point for lawmakers discussing the efficacy of protectionist trade measures versus free-market strategies. The report concludes that without a shift in policy or significant supply chain restructuring, higher consumer costs are likely to become a persistent feature of the U.S. economic landscape for the foreseeable future.
* bitget.com
* taxfoundation.org
* foxbusiness.com
* wiss.com
