Fact Check: Trump's tariffs cost American businesses billions monthly.

Fact Check: "Trump's tariffs cost American businesses billions monthly."

What We Know

President Trump's tariffs, which were implemented starting in April 2025, have had a significant impact on American businesses and consumers. According to the Economic Effects of President Trump's Tariffs, tariffs impose a direct tax on imported goods, which can lead to increased costs for domestic consumers and businesses. The tariffs are projected to raise over $5.2 trillion in revenue over the next decade, but they also result in a reduction of total imports by approximately $6.9 trillion during the same period. This reduction in imports indicates that American businesses are facing higher costs as they pay these tariffs, which are ultimately passed on to consumers.

Furthermore, a report from NPR highlights that the federal government collected $68.9 billion in tariffs and excise taxes during the first five months of 2025, marking a 78% increase compared to the previous year. This revenue is primarily sourced from American businesses and families, as the burden of tariffs is not borne by foreign governments but rather by U.S. consumers and businesses who import goods (NPR).

Analysis

The claim that Trump's tariffs cost American businesses billions monthly is supported by multiple sources. The Economic Effects of President Trump's Tariffs outlines how tariffs act as a tax on imported goods, which leads to increased prices for consumers and reduced purchasing power. The report also emphasizes that the economic burden of tariffs can fall on businesses, which may struggle to absorb these costs without passing them on to consumers.

NPR's analysis corroborates this by stating that the tariffs are "a tax on the backs of people who are importing" goods, indicating that businesses are indeed feeling the financial strain (NPR). Additionally, the Budget Lab at Yale University estimates that Trump's tariffs could cost the average American household between $1,000 to $1,200 in annual purchasing power, further illustrating the economic impact on businesses and consumers alike.

Critically assessing the sources, both the Economic Effects report and NPR are credible and provide data-driven insights into the economic implications of the tariffs. The Economic Effects report is published by the Penn Wharton Budget Model, a respected institution known for its economic analysis, while NPR is a well-established news organization that provides balanced reporting on economic issues.

Conclusion

The verdict on the claim that "Trump's tariffs cost American businesses billions monthly" is True. The evidence presented from credible sources indicates that the tariffs impose significant costs on American businesses, which are then passed on to consumers, resulting in billions of dollars in losses monthly. The economic burden of these tariffs is substantial, affecting both the purchasing power of households and the operational costs of businesses.

Fact Check: Trump's tariffs cost American businesses billions monthly.