"President Donald Trump has promised throughout his presidency to revive American manufacturing by slapping punishing tariffs on foreign competition. But a new study from the US Federal Reserve suggests that his efforts have backfired — and that the manufacturing sector is worse off than it was before the president began his protectionist trade policy. Economists Aaron Flaaen and Justin Pierce, who describe their study as “as the first comprehensive estimates of the effect of recent tariffs on the US manufacturing sector,” argue that the data shows that any benefits from protection from foreign competition have been more than canceled out by retaliatory tariffs from trading partners and an increase in the cost of components sourced from abroad. As a result, US manufacturing has seen job losses and higher prices for consumers. The new Federal Reserve study compared how manufacturing industries benefited from tariffs (border taxes on imports) to how much of a hit they...
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