The Federal Reserve Bank of New York said that without the tariff policy introduced by US President Trump, the prices of a large number of everyday consumer goods would have dropped last year until the beginning of this year. The research team at the New York branch of the Federal Reserve said in a paper that as of February, the prices of 67 categories of goods were 2.9 percentage points higher due to tariffs. The research team found that without these tariffs, the prices of the products studied would have dropped by nearly 1%. The team said that for every 1 percentage point increase in the average tariff rate, consumer goods prices will probably rise 0.25 percent after a year. The report shows that among the dozens of products it tracks, the annual price increase peaked in early 2026. However, due to the delay in this policy, it is expected that consumers will still have to bear high prices in 2027. According to the New York Federal Reserve report, about two-thirds of the price impact brought about by tariffs comes directly from tariffs themselves; the remaining price increase pressure comes from chain transmission effects, such as rising costs brought about by local US companies using imported components and raw materials in their products. The three authors of the paper, Mary Amity, Sebastian Heyzer, and David Weinstein, wrote, “The impact of tariffs on consumer prices is greater and lasts longer than the direct effect.”
Zhitongcaijing · 2d ago
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The Federal Reserve Bank of New York said that without the tariff policy introduced by US President Trump, the prices of a large number of everyday consumer goods would have dropped last year until the beginning of this year. The research team at the New York branch of the Federal Reserve said in a paper that as of February, the prices of 67 categories of goods were 2.9 percentage points higher due to tariffs. The research team found that without these tariffs, the prices of the products studied would have dropped by nearly 1%. The team said that for every 1 percentage point increase in the average tariff rate, consumer goods prices will probably rise 0.25 percent after a year. The report shows that among the dozens of products it tracks, the annual price increase peaked in early 2026. However, due to the delay in this policy, it is expected that consumers will still have to bear high prices in 2027. According to the New York Federal Reserve report, about two-thirds of the price impact brought about by tariffs comes directly from tariffs themselves; the remaining price increase pressure comes from chain transmission effects, such as rising costs brought about by local US companies using imported components and raw materials in their products. The three authors of the paper, Mary Amity, Sebastian Heyzer, and David Weinstein, wrote, “The impact of tariffs on consumer prices is greater and lasts longer than the direct effect.”
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