Americans paying bulk of Trump’s tariffs as ruling awaits

It appears the financial burden of President Donald Trump’s tariffs is largely falling on the shoulders of American consumers and businesses, not on the foreign nations they were intended to impact.

A recent report from the Federal Reserve Bank of New York sheds light on this economic reality, indicating that the bulk of these import taxes are being absorbed domestically. This means that when tariffs are imposed on goods entering the U.S., it’s often American importers who pay the tax, which can then be passed on to consumers in the form of higher prices, or absorbed by businesses, impacting their profit margins.

This insight comes as a significant reminder of the complex and often unintended consequences of trade policies, highlighting how even policies aimed at protecting domestic industries can result in a direct financial cost to the very citizens they seek to benefit.

Source: Original Article