US consumers, business pay 90% of tariff costs, says Federal Reserve

The Federal Reserve's research findings challenge President Trump's claim that foreign companies would bear the brunt of tariff costs imposed by the United States. According to the study, US consumers and businesses pay approximately 90% of the tariff costs, while only 10% is borne by foreign exporters. The study analyzed the impact of US tariffs on Chinese imports, which were implemented in 2018 and 2019. It found that the tariffs resulted in higher prices for US consumers and reduced profits for US businesses, with the burden falling primarily on American stakeholders rather than on Chinese exporters. The findings are significant as they shed light on the actual economic impact of tariffs, which are often presented as a tool to protect domestic industries and jobs. The research suggests that the costs of these trade policies are primarily borne by American citizens, raising concerns about the effectiveness and the broader economic implications of such measures.