Study Shows US Pays Tariff Costs
A study from the New York Federal Reserve found important news. US companies and consumers pay about 90% of tariff costs.
President Trump claimed foreign companies would pay tariffs instead. But the Federal Reserve's research contradicts his claim. American businesses and people bear the burden of tariffs.
Klear Note — Tariffs are taxes on goods imported from other countries. When tariffs increase, prices for American shoppers and businesses typically go up.
Key Terms 2
- tariff A tax on goods brought into a country from other countries.
- New York Federal Reserve A bank that studies the US economy and makes reports.