Trump’s tariffs cost households $1,000 in 2025, set to rise to $1,300 in 2026: Research group finds

President Donald Trump’s tariffs cost the average American household $1,000 in 2025, according to new research from the non-profit Tax Foundation. The burden is expected to rise to $1,300 per household in 2026 if the existing tariffs remain in place.

Trump has imposed multiple 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 applied Section 232 tariffs on a wide range of products including autos, heavy trucks, steel, aluminum, lumber, furniture, semiconductors, pharmaceuticals, and copper.

The research described Trump’s tariffs as “the largest U.S. tax increase as a percent of GDP since 1993,” highlighting the growing strain on American families already facing high prices.

“The tariffs are exacerbating cost-of-living pressures at a time when many households are grappling with persistently high prices,” the Tax Foundation said.

“Historical evidence and recent studies show that tariffs are taxes that raise prices and reduce available quantities of goods and services for US businesses and consumers, resulting in lower income, reduced employment, and lower economic output,” the report notes.

“While tariffs raise revenue, they also increase costs for consumers and reduce the net gains from tax cuts,” the research said.

The Tax Foundation’s 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 an additional 0.4% if upheld in courts

Retaliatory tariffs by other countries: Could reduce GDP by 0.2%

Combined effect: Long-run GDP may fall by 0.7%

A panel of judges at the US International Court of Trade ruled on May 28 that the IEEPA tariffs were illegal.

This decision was upheld by the US Court of Appeals.