Who Pays The Tariff Cost 3/2/26

Summary

Podcast Summary: Your Money Minute

Episode: Who Pays The Tariff Cost
Date: March 2, 2026
Host: Jessica Ettinger (CNBC)
Duration: 60 seconds

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Episode Overview

This episode of "Your Money Minute" tackles the real-world impact of U.S. tariffs on American consumers. Using the latest data from the New York Federal Reserve and nonpartisan sources, CNBC’s Jessica Ettinger and contributors break down who bears the financial burden of tariffs—and why many Americans are unhappy with them.

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Key Discussion Points & Insights

1. Consumer Sentiment About Tariffs

• Multiple surveys confirm that American consumers largely dislike tariffs.
• Jessica Ettinger [00:05]: “Survey after survey shows that American consumers generally dislike tariffs. And new data from the New York Fed may show why.”

2. Who Actually Pays for Tariffs?

• Robert Frank [00:12]: “Report from the New York Fed that said Americans are absorbing almost all of the costs of President Trump’s tariffs.”
  • This means the increased costs do not fall on foreign exporters, but rather on U.S. consumers through higher prices.

3. Tariffs' Impact on Household Budgets

• The nonpartisan Tax Foundation estimates significant additional annual costs per household:
  • Jessica Ettinger [00:19]: “The Trump tariffs cost the average American household about $1,000 last year paid in higher prices… this year would pay about thirteen hundred dollars because of the tariffs.”
• Steve Sedgwick [00:39]: “It is unambiguous. Tariffs are being passed on to US Companies and individuals.”

4. Legal and Policy Context

• There have been recent Supreme Court rulings on the constitutionality of certain tariffs:
  • Jessica Ettinger [00:46]: “The Supreme Court ruled that the Trump administration’s so-called reciprocal tariffs announced last April are unconstitutional. But the president put into effect a new set of tariffs on goods coming into the US under a different statute.”
  • Regardless of legal distinctions, tariffs in some form continue to be implemented.

5. Who Bears the Cost at Each Step?

• The immediate pressure is on American businesses—who then pass some of the added cost to the end consumer.
  • Jessica Ettinger [00:58]: “The data show American businesses pay most of the cost to bring in anything and at least some of that cost gets passed on to the end US Consumer.”

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Notable Quotes & Memorable Moments

• Robert Frank [00:12]: “Americans are absorbing almost all of the costs of President Trump’s tariffs.”
• Jessica Ettinger [00:19]: “…Trump tariffs cost the average American household about $1,000 last year… this year would pay about thirteen hundred dollars…”
• Steve Sedgwick [00:39]: “It is unambiguous. Tariffs are being passed on to US Companies and individuals.”

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Important Timestamps

• [00:05] – Consumer dislike for tariffs and new Fed data
• [00:12] – Robert Frank explains cost absorption by Americans
• [00:19] – Stats from the Tax Foundation on household impact
• [00:39] – Steve Sedgwick: tariffs affecting companies & individuals
• [00:46] – Supreme Court’s ruling; new tariffs under different laws
• [00:58] – How costs move from businesses to consumers

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Content Tone and Language

The tone is concise, fact-based, and informative, targeting everyday listeners concerned about their personal finances. The speakers use straightforward language to clarify how macroeconomic policies affect household budgets.

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For in-depth reporting and updates:
Jessica Ettinger mentions ongoing coverage at cnbc.com.

Transcript

[Jessica Ettinger]

With a CNBC you Money minute. I'm Jessica Ettinger. Survey after survey shows that American consumers generally dislike tariffs. And new data from the New York Fed may show why.

[Robert Frank]

Report from the New York Fed that said Americans are absorbing almost all of the costs of President Trump's tariffs.

[Jessica Ettinger]

That's CNBC's Robert Frank. Meantime, the nonpartisan Tax foundation said the Trump tariffs cost the average American household about $1,000 last year paid in higher prices. And the data show the average household this year would pay about thirteen hundred dollars because of the tariffs. Here's CNBC's Steve Sedgwick.

[Steve Sedgwick]

It is unambiguous. Tariffs are being passed on to US Companies and individuals.

[Jessica Ettinger]

Now there is a difference when it comes to tariffs. The Supreme Court ruled that the Trump administration's so called reciprocal tariffs announced last April are unconstitutional. But the president put into effect a new set of tariffs on goods coming into the US Under a different statute. No matter. Tariffs happen. The data show American businesses pay most of the cost to bring in anything and at least some of that cost gets passed on to the end US Consumer. Full coverage of the fast changing tariff [e-mail] I'm Jessica Edinger. CNBC

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