A study from the Federal Reserve Bank of New York found that most of the costs associated with tariffs introduced in 2025 ultimately fell on domestic companies and households. In the first eight months of that year, the report found that about 94% of the cost was absorbed within the United States, with the share gradually declining later in the year as some of the burden shifted slightly toward foreign exporters.
The tariffs were part of a broader effort to reshape global trade and encourage more domestic production. Duties of up to 50% were placed on imported metals and expanded to include many goods made with those materials, such as appliances and vehicles. These actions pushed U.S. import duties to levels not seen in decades. At the same time, the policy generated significant federal revenue and encouraged new investment in domestic manufacturing and supply chains. Companies across several industries announced major investments in U.S. facilities while supply chains began shifting away from reliance on certain overseas suppliers.
Despite these developments, the research highlights the economic trade-offs involved in aggressive tariff strategies. Higher import costs often work their way through the supply chain, raising prices for businesses that rely on imported materials and, ultimately, the consumers who purchase finished goods. The findings illustrate how trade policy can influence prices, business costs, and broader economic conditions across multiple industries.
The Cardiff Connection
Dean Lyulkin, founder of The Dean’s List and CEO of Cardiff, declared that the New York Fed’s data “kills the myth” that foreign countries absorbed the majority of the tariff costs. Instead, the research shows that most of the financial impact was felt within the United States.
Lyulkin also noted that tariffs placed on key industrial materials created widespread effects across the economy. Because those materials are used to produce many everyday goods, from consumer products to household appliances, the higher import duties ultimately increased costs throughout the supply chain. As those costs moved through the system, they contributed to affordability pressures for consumers and businesses alike.
These developments highlight how policy decisions in global trade can ripple across domestic markets. By examining how tariffs influence supply chains, pricing, and business investment, Cardiff helps investors and business leaders better understand the broader economic forces shaping financial markets and long-term economic strategy.
