Kevin Hassett, Director of the White House National Economic Council, stated on Wednesday that a recent study from the Federal Reserve Bank of New York, which indicated that US businesses bear the majority of the tariff burden, is "embarrassing" and that those involved should face "disciplinary action." Hassett remarked that the conclusions drawn by the study generated significant media attention and were highly partisan, adding that the quality of analysis would not be acceptable even in an introductory economics course. He further contended that tariffs would ultimately benefit American consumers.

Hassett's comments continue a pattern of criticism from President Donald Trump targeting economic analyses he disagrees with. In August, Trump publicly suggested on social media that Goldman Sachs CEO David Solomon should "get a new economist." This followed a report from Goldman Sachs' research team stating that US consumers would bear most of the tariff costs. Less than two weeks later, Trump dismissed Erica Groshen, then Commissioner of the Bureau of Labor Statistics, hours after the agency released a report showing weak job growth.

The New York Fed's study, published last week, found that nearly 90% of the economic burden from tariffs would fall on US businesses and consumers by 2025. The report noted that in the first eight months of this year, approximately 94% of tariff costs were passed on to domestic firms and consumers. By November, the share borne by foreign exporters saw a slight increase—a 1.4% decrease in export prices for a 10% tariff—but the pass-through rate to US entities remained high at 86%. The study's authors concluded that the primary burden of tariffs continues to rest with American companies and households. The report included a standard disclaimer clarifying that the views expressed were those of the authors and not necessarily reflective of the Federal Reserve's official position.

Hassett criticized the New York Fed's research for focusing solely on price effects while ignoring changes in import volumes. He argued that if production of these goods were brought back to the US, generating domestic demand, it would raise American wages and thereby benefit consumers. Hassett was previously considered a leading candidate for Federal Reserve Chairman, but on January 30th, Trump announced his intention to nominate former Fed Governor Kevin Warsh for the position, which still requires Senate confirmation.

Other research aligns with the New York Fed's findings. Studies by Gita Gopinath of Harvard University and Brent Neiman of the University of Chicago found that tariffs are nearly fully passed through to US import prices, meaning the US bears the bulk of the cost. The Congressional Budget Office also released estimates on tariff impacts, suggesting foreign exporters bear about 5% of the cost. Of the domestic share, 30% is absorbed by businesses and 70% is passed on to consumers. Another study from Germany's Kiel Institute described the 2025 tariffs as an "own goal" for the US, concluding that American importers and consumers bear almost the entire cost, with foreign exporters shouldering only about 4% of the tariff burden.