President Donald Trump’s tariffs cost the average American household $1,000 in 2025, according to new research from the nonprofit Tax Foundation. The burden is expected to rise to $1,300 per household in 2026 if current tariffs remain in place.
Trump has imposed numerous tariffs on US trading partners, including China, Canada, Mexico and the European Union, under the International Emergency Economic Powers Act (IEEPA). In addition, he has threatened or implemented Section 232 tariffs on a wide range of products including automobiles, heavy trucks, steel, aluminum, lumber, furniture, semiconductors, pharmaceuticals, and copper.
The research described Trump’s tariffs as “the largest increase in US taxes as a percentage of GDP since 1993”, highlighting the growing pressure on American families who already face high prices.
“Tariffs exacerbate cost-of-living pressures at a time when many households are struggling with persistently high prices,” the Tax Foundation said.
“Historical evidence and recent studies show that tariffs are taxes that raise prices and reduce the amount of goods and services available to U.S. businesses and consumers, leading to lower incomes, reduced employment, and lower economic output,” the report said.
Revenue and economic impact
The federal government will collect $264 billion in tariff revenue in 2025, well above the trillions the White House claims. Analysts note that the tariffs are projected to offset much of the economic benefit of the new tax cuts enacted under Trump’s signature tax bill.
“While tariffs raise revenue, they also raise costs for consumers and reduce the net gains from tax cuts,” the research says.
The Tax Foundation analysis separates the impacts of IEEPA tariffs from Section 232 tariffs:
Section 232 Tariffs: Expected to reduce long-run US GDP by 0.2%
IEEPA Tariffs: Could reduce GDP by another 0.4% if upheld in courts
Retaliatory tariffs by other countries: Could reduce GDP by 0.2%
Combined effect: Long-term GDP may fall by 0.7%
Legal context
The US Supreme Court will soon decide whether the president’s extraordinary powers under the IEEPA include the power to impose tariffs.
A panel of judges at the US Court of International Trade ruled on May 28 that the IEEPA tariffs were illegal.
This decision was upheld by the US Court of Appeals.