U.S. firms and consumers shouldered nearly 90 percent of the economic burden from last year's sweeping tariff hikes, contradicting the Trump administration's argument that the levies are paid by foreign trading partners, according to a report issued by the Federal Reserve Bank of New York on Thursday.
The study reveals that as average U.S. import tariffs surged from 2.6 percent to 13 percent in 2025, foreign exporters largely declined to absorb the added costs by lowering their prices.
Instead, the economic impact fell predominantly on domestic entities: during the first eight months of the year, 94 percent of the tariff incidence was borne by U.S. importers and consumers. That share remained elevated at 92 percent in September and October, dipping only slightly to 86 percent in November.
The findings align with a separate analysis published this week by the U.S. Congressional Budget Office, which estimated that about 70 percent of tariff costs were ultimately transferred to American consumers through higher retail prices on imported goods.
US firms, consumers absorb nearly 90 pct of tariff costs in 2025: bank report
US firms, consumers absorb nearly 90 pct of tariff costs in 2025: bank report
China's Permanent Representative to the United Nations (UN), Fu Cong, said that China supports the preservation of Yemen's national sovereignty, unity, and territorial integrity, and calls for political talks to address regional disputes
Fu made his statement at the 10105th meeting of the UN Security Council on the Middle East on Thursday.
"The international community should double its efforts and work together to promote an early political settlement of the Yemen issue. China supports the preservation of Yemen's sovereignty, unity, and territorial integrity. We urge all parties to address their differences through political dialogue, work towards early reconciliation and swift resumption of economic reconstruction. We urge all Yemeni parties to exercise calm and restraint, to refrain from the use of force or any actions that could reignite conflict, and to preserve stability on the ground. China will continue to work together with the international community to make unremitting efforts towards achieving a political settlement of the Yemeni issue and restoring peace and stability across the Middle East," Fu said.
During the meeting, the U.S. representative noted that ships bound for Houthi-controlled ports should strictly comply with the UN verification and inspection procedures to ensure full implementation of the arms embargo adopted in the UNSC Resolution 2216, with a deliberate emphasis on ships "originating from Chinese ports."
In response to the groundless innuendo, Fu emphasized that China has been implementing strict control over military and dual-use items, and the legal and normal commercial activities between Chinese companies and other countries should not be accused of.
"In response to the relevant statement by the U.S. representative, I wish to stress that China has been strictly upholding and implementing Council resolutions, and faithfully fulfilling its international obligations. China's approach to the export of military equipment has always been prudent and responsible. Our control of dual-use items has always been stringent. In the meantime, Chinese companies have the right under WTO rules and market principles to carry out normal commercial and trade cooperation with all countries. The U.S. representative, without presenting any evidence, has resorted to insinuation and groundless accusations against China. We find this regrettable, and we reject such accusations," Fu said.
China calls for political settlement of Yemen issue at Security Council meeting
