# Fed Data Shows Tariffs Drove Inflation in 2025

> Tariffs raised prices for 67 U.S. goods by 2.9 percentage points in 2025.
- Title: Fed Data Shows Tariffs Drove Inflation in 2025 · Pymnts
- Summary: Tariffs raised prices for 67 U.S. goods by 2.9 percentage points in 2025. U.S. tariffs increased prices for 67 categories of goods by 2.9 percentage points…
- Keywords: fed, tariffs, inflation, consumer goods, federal reserve bank of new york, price increases, 2025, business, finance, Data, Shows, Drove
- Source: Pymnts — https://pymnts.com/economy/2026/fed-data-shows-tariffs-drove-inflation-in-2025
- Author: PYMNTS
- Published: 2026-10-08T19:15:13+00:00
- Read time: 1 min
- Topics: fed, tariffs, inflation, consumer goods, federal reserve bank of new york, price increases, 2025, business, finance
## Fed Data Shows Tariffs Drove Inflation
New research shows U.S. tariffs increased the cost of 67 consumer goods by 2.9 percentage points in 2025.

> Importantly, tariffs also raise the prices of goods that are not directly taxed: goods made in the U.S. account for about a third of the total effect
## Tariffs Impact on Prices
Prices for these goods would have dropped by nearly 1% without tariffs, with indirect effects taking a year to fully materialize.

> This indirect effect takes longer to materialize than the direct effect on imported goods, so the full effect of a tariff takes about a year to appear.
## Supreme Court Ruling on Tariffs
The Supreme Court ruled in February that many White House tariffs were illegal, leading to billions in refunds for retailers.
## Retailers Use Refunds to Lower Prices
Walmart, Tractor Supply, e.l.f. Beauty and Burlington announced plans to lower prices using tariff refunds.

> It feels like the right thing to do for our customers
## Consumer Concerns Shift
American consumers are less worried about job losses but more concerned about prices and household finances in late 2026.
## Key takeaway

U.S. tariffs increased prices for 67 categories of goods by 2.9 percentage points in 2025, with indirect effects on domestic production taking a year to fully materialize.