Domestic Burden of Tariffs Rises: CBO, Fed Data Show 90% Paid by U.S. Households

The Federal Reserve Bank of New York and the Congressional Budget Office confirm that U.S. households bear nearly 90% of import taxes from 2025 tariffs. In dollar terms, the average household paid an additional $1,000 in 2025, with businesses passing on about 70% of the burden. The CBO estimates consumers absorb roughly 5% of the cost, while businesses absorb about 25%. The Tax Foundation report found that businesses are likely to narrow margins, passing the bulk of the burden to consumers. Tariff fatigue is mounting, with six House Republicans uniting with Democrats to seek repeal of Canadian tariffs, despite a likely Trump veto. A Supreme Court ruling on the legality of the tariffs is pending, potentially disrupting the agenda. White House spokesman Kush Desai defended the policy, citing lower inflation and higher corporate profits despite a sevenfold increase in the average U.S. tariff rate. Meanwhile, household cost concerns outpace these gains, as job growth in 2025 was dominated by health care and social assistance (97% of gains), signaling a one-legged stool supporting broader economic resilience.