Trump tariffs cost US households $1,000 yearly, research finds

US President Donald Trump’s tariff policy cost the average American household about $1,000 in 2025, according to new research from the nonpartisan Tax Foundation, adding pressure to household budgets already strained by high prices.

The cost is projected to rise further this year to $1,300 per household if the current tariffs remain in place, the research found. The think tank described the measures as “the largest U.S. tax increase as a percent of GDP since 1993,” arguing that the tariffs are worsening cost-of-living concerns for many Americans, ABC News writes. 

The Tax Foundation estimates that the U.S. federal government collected $264 billion in tariff revenue in 2025, a figure well below the trillions of dollars frequently cited by the White House. The research also concludes that the tariffs will offset most of the economic gains expected from Trump’s signature tax cuts that came into effect this year.

“America's average tariff rate has increased by nearly tenfold in the past year -- while inflation has actually cooled, real wages have risen, GDP growth has accelerated, and trillions in investments continue pouring in to make and hire in America,” White House spokesman Kush Desai said in a statement to ABC News.

Tariffs fluctuated throughout 2025 as the United States negotiated trade deals with various partners. According to the report, the measures have primarily driven up the cost of imported goods such as electronics, toys and automobiles not produced domestically, as well as food products grown overseas.

Data from the U.S. Bureau of Labor Statistics show sharp price increases in several everyday items: coffee prices rose 33.6%, ground beef 19.3%, romaine lettuce 16.8%, and frozen orange juice 12.4%.

The Tax Foundation found that the average effective U.S. tariff rate jumped from around 2% in 2024 to approximately 10% in 2025, the highest level since 1946. Meanwhile, the most recent government figures show annual inflation stood at 2.7% in December, roughly the same rate as when President Trump took office.

By Sabina Mammadli