- A new study finds the Trump administration’s trade policies and tariffs reduced U.S. income at a rate of $1.4 billion per month by November.
- The Federal Reserve Bank of New York, Princeton and Columbia conservatively estimate that U.S. tariffs cost American consumers at least $6.9 billion last year.
- “Tariffs were almost completely passed through into U.S. domestic prices, so that the entire incidence of the tariffs fell on domestic consumers,” the paper finds.
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.
The study found that U.S. businesses and consumers saw “substantial increases” in the price of goods throughout last year, including a “complete passthrough” of U.S.-imposed tariffs onto imported items. The economists — the New York Fed’s Mary Amiti, Princeton professor Stephen Redding and Columbia professor David Weinstein — also said Americans suffered by a lack of import variety and disruptions to supply chains.
Preliminary results on the study were released earlier this year.
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