Trump’s tariffs cancel out what he claims is ‘the largest tax cut in American history’: The average person will lose $300 even after refunds

President Donald Trump has touted his tax cuts as a major step toward ending the affordability crisis, but a wider analysis of his economic policy reveals that the refunds will likely not offset the burden of tariffs on American households. 

Nonpartisan think tank the Tax Foundation previously estimated that Trump’s tax cut would reduce individual taxes by $129 billion, and up to $100 billion of that could be headed toward refunds, increasing an average return of up to $1,000 compared with last year.

A new report from the Tax Foundation found, however, that the average tariff burden for U.S. households was $1,000 in 2025 and is expected to grow to $1,300 this year, effectively canceling out any benefit from the tax cuts. 

Tariffs will raise a net $1.9 trillion between 2025 and 2034, the Tax Foundation estimates, but the cuts will reduce revenue by $4.1 trillion.

“Tariffs are really holding back the potential of the new tax law, both to deliver relief to taxpayers and to grow the economy,” Erica York, vice president of federal tax policy at the Tax Foundation, told Fortune. “The negative impact on investment and on work from the tariffs will really undercut some of the provisions in the new...