Overview
- The think tank reports the average effective U.S. tariff rate jumped from about 2% in 2024 to roughly 10% in 2025, with the government collecting $264 billion in tariff revenue.
- Independent research, including a Kiel Institute study using shipment-level data, finds Americans pay the vast majority of tariff costs, with pass-through varying due to delays and exemptions.
- A National Bureau of Economic Research paper links the tariffs to roughly 0.7 percentage points of inflation through late 2025, and the Fed chair has signaled only a modest additional effect early in 2026.
- The legality of tariffs imposed under the International Emergency Economic Powers Act is before the U.S. Supreme Court after lower courts questioned that authority.
- The White House defends the program as compatible with cooling inflation and stronger growth, and it has carved out some products, including hundreds of food items, to ease price pressures.