$1,000 Cost Of Living Burden In 2025 For The Average American

February 11, 2026

The cold hard reality is that the tariffs increase costs.

The cost pressures flow to every corner of American's lives including their Telecom bills.

A BuzzFeed article reports on a new study from the Tax Foundation estimating the financial impact of President Donald Trump’s 2025 tariffs on American households. Despite earlier claims that foreign countries would bear the cost, economists had warned that tariffs function like taxes on imports and are typically passed on to consumers. According to the report, the tariffs amounted to an average tax increase of about $1,000 per U.S. household in 2025, with that figure projected to rise to $1,300 in 2026. The study also found that the tariffs represent the largest U.S. tax increase as a share of GDP since 1993, reaching 0.54% of GDP in 2026.

The article further references research from the Kiel Institute for the World Economy, which concluded that Americans absorbed 96% of the tariff costs, while foreign exporters bore just 4%. Critics argue that the financial burden falls disproportionately on lower-income households, who spend a greater share of their income on goods affected by tariffs. The story highlights political reactions, including social media posts from Democratic lawmakers and commentators, who contend that consumers are feeling the impact through higher prices at grocery stores and other retailers. The article ends by inviting readers to share whether they have personally noticed tariffs affecting their budgets.

ARTICLE SOURCE : https://ca.finance.yahoo.com/news/study-just-found...

Back