Overview
- Using data through November 2025, the New York Fed estimates U.S. buyers absorbed 94% of tariff costs from January to August, 92% in September–October, and 86% in November as some burden shifted abroad.
- Economists report average U.S. tariff rates jumped from roughly 2.6% to about 13% over 2025, with limited foreign price cuts to offset the increases.
- Customs receipts soared, with $287 billion collected in calendar 2025 and $30 billion in January 2026, reflecting the higher duties.
- Companies detailed the strain, with Procter & Gamble raising prices and General Motors citing a $1.1 billion profit hit, while importers shifted sourcing away from China toward Mexico and Vietnam.
- Political and legal tests are intensifying, as the House voted to overturn certain Canada-focused tariffs, the Supreme Court weighs the administration’s IEEPA authority, and the White House reviews potential metal-tariff exemptions and a pause on further expansions.