Donald Trump imposed tariffs on global trade partners using the International Emergency Economic Powers Act(Image: Getty Images)

Fresh analysis from the Tax Foundation has outlined the economic impact of tariffs introduced under Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA).

The measures, which targettrading partners such as China, Canada, Mexicoand the UK, have beenlinked to higher living costs for US households. Research from the Kiel Institute suggests the financial hit has largely landed on American consumers, who are estimated to have absorbed 96% of tariff-related price increases. The study examined more than 25 million shipment records covering over $4 trillion in US imports.

Julian Hinz, Research Director at the Kiel Institute and one of the authors of the study, said: "The tariffs are an own goal, The claim that foreign countries pay these tariffs is a myth. The data show the opposite: Americans are footing the bill," he said.

It comes afterTrump issued an update on when Americans will get $2,000 stimulus checks this year.

The findings add to wider assessments that point to tariffs functioning as a domestic tax. One analysis states: “The Trump tariffs are the largest US tax increase as a percent of GDP (0.54 percent for 2026) since 1993.”

Trump is awaiting a decision from the Supreme Court on his IEEPA tariffs(Image: Getty Images)

The White House has pushed back against criticism of the tariff program. In comments to ABC News, spokesman Kush Desai said: "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.”

Despite this, estimates indicate the cost burden on households is expected to rise further this year, increasing from last year's eye-watering $1,000 to $1,300 per household. Analysts say consumers are expected to shoulder almost all of the tariff-related costs through higher prices.

The effects are being seen across everyday spending, with higher prices reported for basic goods. Apparel and leather products have seen price increases of 34% and 36% respectively, while the average cost of a car has risen by about $5,700, according to the Eurasia Review.

Source: Drudge Report