TechFlow reports that, according to a February 12 Fortune article, new research from the nonpartisan U.S. think tank Tax Foundation shows that the Trump administration’s tariff policies are offsetting the economic benefits of its tax cuts. The study found that the average U.S. household’s tariff burden will reach $1,000 in 2025 and is projected to rise to $1,300 in 2026—exceeding the average $1,000 tax refund provided by the tax cuts.
Erica York, Vice President at the Tax Foundation, stated that tariffs are undermining the new tax law’s potential to deliver relief to taxpayers and foster economic growth. The study projects that tariffs will generate a net $1.9 trillion in revenue between 2025 and 2034, while tax cuts will reduce revenue by $4.1 trillion. The analysis notes that 96% of the tariff burden falls on U.S. importers and consumers, leading to higher prices and slower income growth.
