WASHINGTON — President Donald Trump‘s tariff policy cost the average American household about $1,000 in 2025 and could rise to $1,300 this year if current levies remain in place, according to new research from the nonpartisan Tax Foundation.
The Tax Foundation characterized the tariffs as “the largest U.S. tax increase as a percent of GDP since 1993,” suggesting the administration’s signature trade strategy is adding pressure to household budgets at a time when many consumers remain cautious about discretionary purchases such as home furnishings.
For the furniture industry, where the big-ticket purchases that drive growth depend on consumer confidence and housing activity, the added costs could influence buying patterns, particularly if shoppers redirect spending toward essentials.
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The research found the federal government collected roughly $264 billion in tariff revenue in 2025, far below the trillions cited by the White House. Analysts in the report also concluded that the tariffs are likely to offset much of the economic benefit tied to the administration’s latest tax cuts.
Tariffs fluctuated throughout last year as the U.S. negotiated trade agreements, but they broadly affected products not manufactured domestically — including electronics, toys and automobiles — as well as imported food.
Bureau of Labor Statistics data shows notable price increases for several staples, including coffee, up 33.6%; ground beef, up 19.3%; romaine lettuce, up 16.8%; and frozen orange juice, up 12.4%.
Furniture industry executives have repeatedly noted that higher import costs typically filter through supply chains, eventually reaching retail price tags.
The Tax Foundation said the average effective U.S. tariff rate jumped from about 2% in 2024 to roughly 10% in 2025, the highest level since 1946. Meanwhile, the annual inflation rate stood at 2.7% in December, roughly unchanged from when President Trump took office.
The White House, for its part, pushed back on the report’s conclusions, emphasizing broader economic indicators over the tariff price tag alone.
“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 spokesperson Kush Desai said in a statement to ABC News.
