A new report is challenging one of the biggest claims about tariffs, and it has important implications for inflation, interest rates, and real estate.

I'm Kathy Fedke, and this is Real Estate News for investors.

This is Real Estate News with Kathy Fedke.

A recent study from the Federal Reserve Bank of New York finds that Americans are paying

nearly all of President Trump's recent tariffs on imported goods, not foreign countries.

Tariffs are taxes placed on products brought into the U.S. supporters argue they help protect

American industry, raise government

revenue, and encourage companies to manufacture here at home. The Trump administration has often said

that foreign exporters would absorb much of the cost. But according to the New York Fed's research,

about 90% of those costs are being borne by U.S. consumers and businesses.

The report examined last year's sharp increase in tariffs when the average rate rose from

2.6 to 13%. At one point in the spring, tariffs on Chinese goods were increased as high as

125% before being lowered to 113.

Researchers found that foreign exporters did not significantly reduce their prices to offset

the tariffs.

In economic terms, there was nearly full pass-through, meaning higher tariffs translated directly

into higher import prices paid by Americans.

From January through August, Americans absorbed about 94% of the tariff costs. That figure eased slightly later in the year, but remained well

above 85%. A similar conclusion came from the Congressional Budget Office. The CBO reported that

higher tariffs directly increased the cost of imported Office. The CBO reported that higher tariffs directly

increase the cost of imported goods.

It estimates foreign exporters absorb only about 5% of the cost.

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