The Donald Trump administration’s tariffs on imports last year fell mostly on US importers and consumers rather than overseas exporters, according to a study by the Federal Reserve Bank of New York (New York Fed).

“We find that nearly 90 per cent of the tariffs’ economic burden fell on US firms and consumers,” said the paper authored by staff economists at the New York Fed and another economist at Columbia University.

Nearly nine-tenths of the economic burden of the US tariffs on imports last year fell mostly on US importers and consumers rather than overseas exporters, a study by the Federal Reserve Bank of New York found.
Close to 94 per cent of new tariffs in January-August 2025 was absorbed by US importers and consumers.
This share stood at 92 per cent from September to October and 86 per cent in November 2025.

Close to 94 per cent of new tariffs in January-August 2025 was absorbed by US importers and consumers, the study noted. This share stood at 92 per cent from September to October and 86 per cent in November last year.

“These findings are consistent with two other studies that report high pass-through of tariffs to US import prices,” said the paper.

The average US tariff rate on imported products rose from 2.6 per cent at the beginning of 2025 to 13 per cent by the end of the year, the study noted.

US import prices for goods subject to the average tariff increased by 11 per cent more than those for goods not subject to tariffs.

The Department of Homeland Security collected $287 billion in customs duties, taxes and fees in 2025—up by 192 per cent year on year, according to the Department of Treasury.

The reaction from exporters last year was essentially the same in 2018, when Trump imposed certain tariffs during his first term in office—the cost of goods for consumers rose, with little other economic impact recorded, the New York Fed said at the time.

Fibre2Fashion News Desk (DS)

CareEdge Global Ratings believes India’s recent trade deals with the United States and the European Union (EU) along with the fiscal policy path outlined in the budget for fiscal 2026-27 (FY27) uphold the country’s BBB+/stable credit profile.

These developments could enhance the diversification and scale of India’s exports and support medium-term growth prospects, it noted in a release.

At the same time, the budget signals a steady and calibrated approach to fiscal consolidation, anchored in maintaining deficit target with continued emphasis on capital investment, it said.

CareEdge Global Ratings believes India’s recent trade deals along with its fiscal policy path uphold the BBB+/stable credit profile.
These could enhance the diversification and scale of exports and back medium-term growth.
While India’s public debt levels and interest burden are high, resilient domestic demand, diversified growth drivers and comfortable external buffers may back macroeconomic stability.

From a credit perspective, the improved tariff setting supports near-term growth prospects and enhances the predictability of export-linked revenues.

By placing India on a more competitive footing relative to other emerging market exporters, these agreements could support export momentum amid a fragmented global trade environment, remarked CareEdge Global.

While India’s public debt levels and interest burden remain elevated, resilient domestic demand, diversified growth drivers and comfortable external buffers are expected to support macroeconomic stability over the near to medium term, it said.

Sustained progress on revenue mobilisation, delivery on disinvestment targets and effective debt management will be critical to maintaining fiscal credibility and supporting India’s credit profile over the medium term, it added.

Fibre2Fashion News Desk (DS)