New York Fed finds Trump tariffs raised prices on US-made goods

New research from the Federal Reserve Bank of New York indicates that President Donald Trump's tariffs have increased the cost of products manufactured in the United States. The study estimates that these trade policies added approximately 2.9 percentage points to prices across the consumer goods examined.

The Federal Reserve Bank of New York found that prices for many everyday goods would have fallen by early 2026 without the implementation of the tariffs. Instead, prices rose during this period. The researchers determined that roughly two-thirds of the tariff-related price increase originated from imports, while about one-third stemmed from goods produced domestically.

White House spokeswoman Taylor Rogers told Fox News Digital that the administration maintains foreign exporters will ultimately bear the cost of the tariffs. Rogers stated that the "America First" trade agenda aims to reduce the trade deficit and revitalize American manufacturing, arguing that the policies will deliver lasting benefits to workers, farmers, and producers.

Scott Lincicome, vice president of general economics at the Cato Institute, noted that consumers are unlikely to see price declines as long as the tariffs remain in place. Lincicome told Fox News Digital that while tariffs have already increased prices, it remains unclear if prices will stay stable or rise further as companies pass on more costs. He emphasized that the inflationary impact has largely peaked but consumer goods prices will remain higher than they otherwise would have been.

The study indicates that price hikes linked to tariffs often require up to a year to fully manifest at the register. This delay is particularly evident when domestic producers face elevated expenses for foreign raw materials and parts. Lincicome warned that rising diesel costs could further increase transportation expenses for businesses relying on trucks, trains, and agricultural equipment. He described this as an additional layer of pressure on American households, compounding the price increases from tariffs with energy cost spikes attributed to the Iran war.