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Liberty Street EconomicsWho Is Paying for the 2025 U.S. Tariffs? - Liberty Street...Over the course of 2025, the average tariff rate on U.S. imports increased from 2.6 to 13 percent. In this blog post, we ask how much of the tariffs were paid by the U.S., using import data through No We now conduct the same analysis for the 2025 tariffs, covering twelve-month changes from January 2024 through November 2025 (the most recent available data). We report the results in the table below. In this analysis, we also allow the pass-through to change for different months in 2025. Our results show that the bulk of the tariff incidence continues to fall on U.S. firms and consumers. These findings are consistent with two other studies that report high pass-through of tariffs to U.S. import prices. We highlight two main results. First, 94 percent of the tariff incidence was borne by the U.S. in the first eight months of 2025. This result means that a 10 percent tariff caused only a 0.6 percentage point decline in foreign export prices. Second, the tariff pass-through into import prices has declined in the latter part of the year. That is, a larger share of the tariff incidence was borne by foreign exporters by the end of the year. In November, a 10 percent tariff was associated with a 1.4 percent decline in foreign export prices, suggesting an 86 percent pass-through to U.S. import prices. Given that the average tariff in December was 13 percent (see the first chart), our results imply that U.S. import prices for goods subject to the average tariff increased by 11 percent (13 times 0.86) more than those for goods not subject to tariffs. These higher import prices caused firms to reorganize supply chains, as suggested by the findings presented in the two charts above. In sum, U.S. firms and consumers continue to bear the bulk of the economic burden of the high tariffs imposed in 2025. @Cult Icon Thoughts?Darbuka72 started following Thais Belmonte- Today
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Kelsey absolutely stunning for Carolina Herrera, and just always on point.- Oh Polly models
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