Back to today’s briefing

Story perspectives

Trump Tariffs Hiked Inflation, Burdened Consumers, Says Fed

3/4/2026

40 6 Full Breakdown

Summary

Story summary

The New York Federal Reserve found tariffs imposed during U.S. President Donald Trump’s administration were mainly borne by consumers and businesses, with up to 94% absorbed domestically.
The analysis shows tariffs raised inflation by about 0.5 to 0.75 percentage points, with inflation at about 3%.
John Williams, president of the New York Federal Reserve, says the impact is temporary and the economy remains solid.

History

Historical Context

The Smoot-Hawley Tariff Act, signed by President Herbert Hoover on June 17, 1930, raised tariffs on over 20,000 imports, exacerbating the Great Depression by contributing to a 25% GDP decline and a 67% drop in international trade. This protectionist measure prompted retaliatory tariffs from trading partners, illustrating the long-term risks of such policies, a lesson echoed in recent tariffs during Donald Trump's administration.

1 of 2

Story summary

The New York Federal Reserve found tariffs imposed during U.S. President Donald Trump’s administration were mainly borne by consumers and businesses, with up to 94% absorbed domestically.
The analysis shows tariffs raised inflation by about 0.5 to 0.75 percentage points, with inflation at about 3%.
John Williams, president of the New York Federal Reserve, says the impact is temporary and the economy remains solid.

1 / 2