American-made goods also got more expensive under Trump tariffs, new research finds
- New York Fed study: Trump tariffs added 2.9 percentage points to consumer goods prices.
- One-third of the price hike comes from American-made products, not just imports.
- Without tariffs, prices on everyday goods would have *fallen* by early 2026 — instead, they rose.
- White House claims tariffs will boost manufacturing; Cato analysts say consumers won't see relief.
- Midterm season is here, and voters angry about grocery bills may take it out on the GOP.
- Energy price spikes from the Iran war are stacking on top of tariff costs, hitting diesel and transport.
- Tariff effects can take up to a year to fully hit wallets — meaning the worst may not be over.
Brief Summary
So much for the 'Made in America' patriotic premium — it turns out the flag on that label also comes with a hidden surcharge. The Federal Reserve Bank of New York has crunched the numbers, and they're ugly for the Trump administration: tariffs aren't just inflating imported junk; they're inflating the good ol' U.S. of A. products too. The Fed found that without the tariffs, everyday consumer goods prices would have actually fallen into early 2026. Instead, they rose — and roughly one-third of that tariff-related price spike is solely due to American-made goods cozying up to higher costs for imported parts and materials.
Why This Matters
Look, you don't need a fancy Fed study to know your wallet is crying, but now you know the why. This destroys the carefully crafted myth that tariffs are a painless way to stick it to foreigners while Uncle Sam's workers thrive. If you're an average schmuck buying diapers, cereal, or a damn hammer, you're paying a 'loyalty tax' on domestic goods that's pure political snake oil. And with midterms one month away, the GOP's campaign promise of 'lowering the cost of living' is about to collide with a brick wall of higher receipts. You want to vote with your wallet? Right now that just means you're paying to subsidize a trade war you never asked for.