Donald Trump's tariffs depressed U.S. income by $1.4 billion per month as of last November, according to a new study from the Federal Reserve Bank of New York, Princeton University, and Columbia University.
Almost all of the burden of that reduction in income is falling on domestic producers and consumers, that data showed. The study said Trump's tariffs "were almost completely passed through" to imported goods bought by Americans. Once more, there was "no impact" on the exporters the tariffs were intended to punish.
“We find that the U.S. tariffs were almost completely passed through into U.S. domestic prices, so that the entire incidence of the tariffs fell on domestic consumers and importers up to now, with no impact so far on the prices received by foreign exporters,” the economists with the Fed, Princeton and Columbia wrote. “We also find that U.S. producers responded to reduced import competition by raising their prices.”
Although the losses were growing by $1.4 billion per month as of last November, they had accumulated to a total of $6.9 billion between January and November last year. That's actually a conservative estimate. The study found it would have come closer to being a $12.3 billion loss in revenue, but the losses were partially offset by the GOP tax cut. That means the losses are likely to continue mounting at an even greater rate as the effects of the GOP's temporary goosing of the economy wane.