The Federal Reserve has released research indicating that US consumers and businesses are paying approximately 90% of the costs associated with tariffs, contradicting a claim made by Trump that foreign companies would bear the burden.
The research conducted by the Federal Reserve provides insight into the actual effects of tariffs on the US economy, shedding light on who ultimately pays the costs. This finding is significant as it highlights the impact of tariffs on domestic consumers and businesses, rather than foreign companies as previously suggested.
The implications of this research are substantial, as it suggests that the costs of tariffs are largely being absorbed by the US, rather than being passed on to foreign entities. As a result, US consumers and businesses may face increased costs, potentially affecting their purchasing power and profitability. The Federal Reserve‘s findings are likely to influence future trade policies and decisions, as policymakers consider the actual effects of tariffs on the US economy.
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