Trade Tides Rising

According to the New York Fed, tariffs imposed on imported goods are ultimately paid by U.S. consumers and businesses, not by the exporting country. Their research indicates that tariffs function as a tax on domestic buyers of foreign products. The video highlights that while tariffs are intended to protect domestic industries and encourage local production, they also lead to higher prices for imported goods. These increased costs are generally passed on to consumers in the form of higher retail prices or absorbed by businesses, which can impact profitability. The New York Fed's analysis suggests that tariffs implemented in recent years, specifically those targeting goods from China, have had a discernible impact on inflation. These tariffs contribute to inflationary pressures by raising the cost of inputs for U.S. manufacturers and increasing the prices consumers pay for finished products. The effect on specific sectors varies depending on the tariff rate and the availability of alternative supply sources, but generally, tariffs increase prices. The report emphasizes that the initial expectations that exporting countries would bear the cost of tariffs have not materialized. Instead, U.S. importers and consumers are the ones paying the price, thus affecting overall economic conditions. find the original article here: https://finance.yahoo.com/video/tariffs-impact-prices-ny-feds-222415201.html