A New York Federal Reserve study finds that nearly 90% of the economic burden from Donald Trump's tariffs has been shouldered by U.S. businesses and consumers.
A recent study by the New York Federal Reserve challenges the claims made by the Trump administration regarding the impact of tariffs. While the administration asserted that the economic burden of tariffs fell primarily on foreign exporters, the study reveals that this is not the case. It indicates that approximately 90% of the burden of tariffs imposed by former President Trump is actually borne by American consumers and businesses.
This analysis underscores the financial implications of the tariff policies instituted by Trump, showing a stark increase in tariffs from an average of 2.6% to 13% within the year 2025. The findings coincide with previous research that highlighted the adverse effects of these trade policies on the U.S. economy. As tariffs adjust business costs, these additional expenses are typically passed on to consumers, leading to higher prices for goods and eroding purchasing power.
Ultimately, the study emphasizes the reality that the American populace is feeling the repercussions of these trade decisions more than the intended foreign exporters. This revelation may influence economic policy debates and shed light on the broader impact of tariffs on domestic economic health, prompting questions about whether such practices should continue in the future.
