CBS news | 22:10 12-02-2026 | Finance
The tariffs imposed by the Trump administration in 2019 were largely borne by American consumers rather than foreign exporters, the New York Federal Reserve has claimed. The study contradicts the administration's claim that China and other nations were to foot most of the bill. Instead, the cost was passed onto U.S. firms and consumers.
Under Trump's tenure, the U.S. had levied trade restrictions on billions of dollars worth of international goods, mainly from China, which was viewed as an attempt to rectify trade imbalances. However, the tariffs became a financial burden predominantly for Americans and the domestic economy. This shift signifies a considerable discrepancy from President Trump's assertion that other countries were primarily responsible for bearing the brunt of his administration's tariff policy.
The Fed's analysis resulted in evidence revealing that American businesses and consumers had absorbed the majority of tariff costs. Consequently, they faced substantial economic constraints due to the higher prices of goods and potential layoffs in industries affected by the trade limitations. It underscores the understanding that tariffs, while implemented as a strategic tool in international trade, often lead to domestic consumers bearing higher costs.
Essentially, the New York Federal Reserve's insights challenge the narrative of the Trump administration concerning the impact and intended benefits of their tariff policies. The study indicates that, contrary to the stated objectives of forcing a favorable trade balance shift with China and other nations, the tariffs predominantly affected U.S. firms and consumers, causing them to bear higher costs for goods and potential job losses in sectors hit by the trade restrictions.