The Federal Reserve Bank of New York said in a report released on Thursday that U.S. consumers and businesses have shouldered the vast majority of the costs stemming from tariffs imposed by the Trump administration, contradicting earlier claims that foreign countries would pay for the levies.

According to the report, the average U.S. tariff rate rose sharply from 2.6 percent to 13 percent last year. The study found that the U.S. absorbed 94 percent of the tariff impact between January and August, 92 percent between September and October, and 86 percent between November and December.

The research noted that during Trump's first term, foreign exporters did not significantly cut prices, meaning tariff costs were almost entirely passed on to U.S. import prices, with the burden "nearly 100 percent" shifted to American buyers.

The Congressional Budget Office (CBO) released similar findings this week, saying higher tariffs directly pushed up prices of imported goods. The CBO estimated that foreign exporters bore around five percent of the cost, U.S. businesses absorbed about 30 percent in the short term, and the remaining 70 percent was passed on to consumers through higher prices.

Tariffs have been a central pillar of Trump's economic agenda, aimed at boosting government revenue, pressuring trade partners and encouraging manufacturing reshoring. However, repeated policy adjustments have fueled market volatility and heightened economic uncertainty.