Trump’s tariffs are driving job losses and production cost hikes, the Fed says

President Trump’s tariffs are harming the very companies he pledged to protect, as a recent Federal Reserve study highlights the negative effects of the president’s trade policy.

Trump has levied tariffs on hundreds of billions of dollars worth of imports from Asia, Latin America and Europe. The president’s trade war with China led the nation to fire back with retaliatory tariffs, and while a phase-one deal is scheduled to be signed January 15, the conflict still weighs on both economic superpowers.

The Fed study, published December 23, explains how tariffs implemented in 2018 fueled job loss and increased input costs across US manufacturers. While the duties did provide some benefits to domestic firms, the negative effects outweighed the positive ones and harmed an already-ailing sector, the Fed wrote.