NY Fed links Trump's tariffs to 2.9% price rise on goods

Summarised from 2 outlets · Updated 8 Oct, 15:48 · Archive

Tariffs added 2.9 percentage points to inflation across 67 categories of consumer goods by February 2026, the New York Federal Reserve found.

Researchers at the New York Federal Reserve have concluded that President Donald Trump's tariffs were responsible for a 2.9 percentage point increase in inflation across 67 categories of consumer goods by February 2026. Without the levies, prices for the goods studied would have fallen by almost 1 per cent over the same period.

Roughly two-thirds of the price increase came directly from the tariffs themselves, whilst the remaining third resulted from knock-on effects such as US-based companies passing on the costs of imported parts and materials used in their products. The researchers found that for each percentage point increase in average tariffs, consumer goods prices rose by roughly a quarter of a per cent a year later.

The study's authors—Mary Amiti, Sebastian Heise and David Weinstein—wrote that goods made in the United States account for about a third of the inflationary effects, though these effects take longer to appear in domestic goods prices. 'The full effect of a tariff takes about a year to appear,' they stated. Consumers are expected to face elevated prices into 2027 as a result of the policy, despite some tariffs being overturned by the US Supreme Court in February.

How it is being reported

• New York Fed study finds Trump's tariffs drove consumer prices upA study by the New York Federal Reserve has tied President Donald Trump's tariff policy to inflation on both imported and domestic consumer goods.UPI · 8 Oct, 15:20
• Inflation on many everyday items was entirely due to tariffs, NY Fed saysTariffs added 2.9 percentage points to inflation in 67 categories of goods by February 2026, researchers at the New York Federal Reserve found.CNBC · 8 Oct, 13:05

In this story: Donald Trump · New York Federal Reserve · United States

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