Americans aren’t just seeing the price tag increase for imported goods. Thanks to President Donald Trump’s tariffs, they are now paying more for products made in the U.S.A., according to new research from the Federal Reserve Bank of New York.
In fact, the research finds that prices for many everyday goods would have fallen last year and into early 2026 without Trump’s tariffs.
The findings offer new evidence of how the sweeping tariff policy, a centerpiece of the president’s economic agenda during his second term, have affected Americans’ wallets — and it’s only getting worse with just one month until the midterm elections.
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Economists had long warned that tariffs would drive up consumer prices, but measuring their precise impact has been difficult as trade policies shifted and companies made decisions about whether to absorb higher costs or pass them along to shoppers.
Put simply, the New York Fed found that tariffs kept prices higher on many of the goods Americans buy every day. Without the tariffs, prices across the consumer goods examined for this study would have fallen by early 2026. Instead, they rose.
The researchers estimated that tariffs added about 2.9 percentage points to prices across the goods they studied. And the impact, notably, was not limited to imported products facing the most fallout from tariffs. The New York Fed found that Trump’s policies pushed up prices on American-made goods.
Researchers estimated that about two-thirds of the tariff-related price increase came from imports, while roughly one-third came from products made in the United States.
The White House pushed back, arguing that tariffs will ultimately benefit U.S. workers and be paid by foreign exporters.
“President Trump’s America First trade agenda is reshaping the international economic order to reduce our trade deficit, revitalize American manufacturing, and deliver lasting benefits to our workers, farmers and producers,” White House spokeswoman Taylor Rogers told Fox News Digital.
The administration has maintained that foreign exporters reliant on access to the U.S. market will ultimately bear the cost of tariffs, Rogers added.
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Scott Lincicome, vice president of general economics at the Cato Institute, told Fox News Digital that consumers may not see significant relief as long as tariffs remain in place.
“What we know is that the tariffs have increased prices a bit,” Lincicome said. “What we don’t know is whether the prices will stay where they are or go up even a little bit more as companies finally cave and start passing on more of the tariff costs onto consumers.”
“As long as the tariffs remain in place, it’s unlikely we’re going to see price declines,” he added.
The research also found that tariff-related price increases can take up to a year to fully reach consumers, particularly when American manufacturers face higher costs for imported materials and components.
Although the researchers estimate that the inflationary impact of existing tariffs has largely peaked, they expect consumer goods prices to remain higher than they otherwise would have been.
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The findings could carry political implications as Trump and Republicans face voters in November after campaigning on lowering the cost of living.
“When you campaign on lowering prices, and then you actually actively increase prices, it’s probably gonna hurt when voters go back to the polls and are mad about prices still being too high,” Lincicome said.
Meanwhile, higher energy costs are adding another layer of pressure on American households.
“It’s really a double whammy for American consumers because first you had the tariffs which increased the prices of a lot of products. And then you had energy prices spike because of the Iran war,” Lincicome said.
He warned that rising diesel costs could push prices higher beyond the gas pump, increasing transportation expenses for businesses that rely on trucks, trains and agricultural equipment.
“Those things are going to act as kind of another tariff because they’re gonna increase the cost of getting that product to you,” he said.
