As those who know economics have been saying all along, it is consumers who pay the cost of tariffs. A new study from the Federal Reserve, in conjunction with Princeton and Columbia universities confirms this, to the tune of $1.4 Billion per month in added cost to consumers.
The Trump administration’s trade policies and tariffs reduced U.S. income at a rate of $1.4 billion per month by the end of November, according to new research from the Federal Reserve Bank of New York, Princeton and Columbia universities.
“We find that the U.S. tariffs were almost completely passed through into U.S. domestic prices, so that the entire incidence of the tariffs fell on domestic consumers and importers up to now, with no impact so far on the prices received by foreign exporters,” the economists wrote. “We also find that U.S. producers responded to reduced import competition by raising their prices.”