Original Coverage & Source Attribution: komonews.com
WASHINGTON (TNND) — The New York Federal Reserve said inflation over the last two years has been due to President Donald Trump’s tariffs.
The New York Federal Reserve put out a report earlier this week that said the cost of 67 categories of goods was 2.9% higher than February due to tariffs.
“A tariff raises the price a U.S. importer (which could be a firm or a consumer) pays for a foreign good, unless the foreign exporter cuts its price to absorb some of the cost,” the report states.
The report explains that consumers often pay the retail price when it comes to tariffs.
“The effects of tariffs on import and producer prices capture only what happens before goods reach the retail stage,” the report reads. “Consumers pay the retail price, which must also cover distribution costs such as transportation, wholesaling, and retailing. These distribution margins account for about half of what consumers pay for goods.”
Trump has imposed tariffs on different countries for both of his presidential terms.
In August, Trump announced new tariffs on drone imports to reduce the U.S. reliance on foreign supply chains and avoid potential national security.
Last month, Canada placed 15% to 50% tariffs on U.S. goods in retaliation for U.S. placing tariffs on Canadian goods.
