A study from the New York Federal Reserve indicates that approximately 90% of the tariffs imposed by Trump are actually borne by American consumers and businesses, contradicting the Trump administration's claims.
A recent study released by the New York Federal Reserve reveals that nearly 90% of the tariffs imposed by President Trump on imports are being paid by American consumers and companies. This finding sharply contrasts with the administration's view that the burden of these tariffs mainly falls on foreign exporters. The study suggests that the economic implications of these tariffs are greater than previously acknowledged by the Trump administration, which has often stated that the impact on American citizens and businesses is minimal.
The study analyzed various tariffs introduced during Trump's administration, including those categorized under 'reciprocal tariffs' aimed at foreign nations. A key point raised concerns who ultimately bears the cost of these tariffs. While the administration argued that foreign manufacturers would lower their prices to remain competitive in the U.S. market, the results demonstrate that it is largely consumers and American businesses that are absorbing these costs.
The implications of these findings prompt further discussions on trade policy and its microeconomic effects on everyday Americans. As the debate over tariff impacts continues, this study challenges the narrative put forth by the previous administration, potentially influencing future policy decisions and public perception regarding trade practices and economic strategy.
