White House Adviser Demands “Discipline” After NY Fed Tariff Study

A New York Federal Reserve report finds that nearly all of President Donald Trump’s tariffs are paid by Americans — a conclusion that has drawn rare public criticism from the White House.

According to Axios, White House economic adviser Kevin Hassett said the authors of the New York Fed research should be “disciplined” for publishing findings that contradict the administration’s message on tariff impacts.

The Federal Reserve Bank of New York’s analysis shows that roughly 90% of the cost of Trump’s import taxes is borne by U.S. consumers and companies, not foreign exporters, as tariff rates rose sharply in 2025.

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The tariff report evaluated how import taxes increased from an average of about 2.6% to more than 13% over the previous year and found that foreign sellers did not lower prices, meaning higher costs were passed directly through to U.S. buyers.

Hassett’s criticism, made in a CNBC interview, signals political tension over independent economic research tied to Federal Reserve institutions. His office has not detailed specific actions behind the term “disciplined” or explained what consequences he envisions for the study’s authors.

Economists broadly agree tariffs tend to function as domestic price rises rather than foreign taxes, but public disagreement from a top economic adviser is uncommon and raises questions about the intersection of policy advocacy and academic analysis.

Related: NY Fed Data Shows Americans Foot 90% of Trump’s Tariff Bill, Contrary to Claims

“It’s a debate about who really pays,” said one policy analyst familiar with tariff literature.

The Federal Reserve’s research arms operate independently, and there’s no evidence the New York Fed intends to retract or alter its findings.

The dispute matters because it could shape public understanding of trade costs and influence future policy debates.

Observers will be watching whether further comments from the White House or responses from the Fed follow.

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