Trump’s tariffs cost American families $1,000 last year, and the Tax Foundation warns 2026 will be even worse

New research from the nonpartisan Tax Foundation shows that President Trump‘s tariffs cost the average American household $1,000 last year. That number is expected to rise to $1,300 per household this year if the current tariff structure remains the same.

This is a major hit to family budgets, especially when people are already dealing with high prices. The Tax Foundation says the cost may go up even more as we move into 2026. The research group called these tariffs “the largest U.S. tax increase as a percent of GDP since 1993.” The president’s main economic policy is making the cost of living worse for many families.

According to ABC News, the federal government collected $264 billion in total tariff revenues in 2025. That’s a large amount, but it falls far short of the “trillions” the White House regularly claims. The research shows these tariffs are going to cancel out most of the economic benefits from the new tax cuts in President Trump’s tax law, which took effect this year.

The numbers show tariffs are offsetting tax cut benefits

The White House sees things differently. 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.” 

The administration has been working to clean up controversial statements made by the president recently. Tariffs changed throughout 2025 as the U.S. worked on trade deals, but they mainly increased the cost of goods not made in America, like electronics, toys, and cars. Foods grown in other countries were also affected.

Coffee drinkers are feeling the pain. According to the Bureau of Labor Statistics, coffee prices rose by 33.6%. Ground beef jumped 19.3%, romaine lettuce increased 16.8%, and frozen orange juice rose by 12.4%. These are big increases in everyday grocery items.

The average tariff rate in the U.S. surged from around 2% in 2024 to roughly 10% in 2025. That’s the highest tariff rate since 1946. Despite these massive tariff increases, the latest government data shows the annual inflation rate in December was 2.7%, which is about the same rate when President Trump first took office. Meanwhile, Trump recently announced he will host the Colombian president he criticized following diplomatic tensions.