NEW YORK (AP) – The New York Federal Reserve estimates that the Trump administration’s latest round of tariff hikes on Chinese goods will cost the typical U.S. household $831 a year.
President Donald Trump has imposed 25% tariffs on $250 billion in Chinese imports. The tariffs were raised from 10% after trade talks stalled earlier this month.
Economists at the New York Fed wrote that rather than buy the tariff-burdened Chinese goods, U.S. companies are likely to purchase from suppliers from other countries. But those goods are still likely to cost more than pre-tariff Chinese goods.
“In sum, according to our estimates, these higher tariffs are likely to create large economic distortions and reduce U.S. tariff revenues,” the New York Fed economists wrote.