Importers Shoulder 94% of Tariffs as US Rate Rises to 13%, Invesco QQQ ETF Loses 2.03%
The New York Fed estimates that US importers absorbed 94% of 2025 tariffs, with average US rates surging from 2.6% to 13% through August. Invesco QQQ ETF dropped 2.03%, as investors weighed the impact of higher import costs and supply chain reconfigurations on technology firms.
1. U.S. Businesses Bear Tariff Burden
The New York Fed report finds US importers absorbed 94% of the 2025 tariff incidence as average US tariff rates jumped from 2.6% to 13% through August, indicating foreign exporters largely maintained prices.
2. Supply Chain Realignments
Rising costs prompted US companies to shift sourcing away from high-tariff regions, reducing China's share of imports below 10% while boosting procurement from Mexico and Vietnam.
3. Market Reaction and ETF Impact
Technology-heavy Invesco QQQ ETF fell 2.03% following the report as investors assessed the implications of sustained import costs and supply chain disruptions on tech firm profitability.