Federal Reserve Examines Effect of 2018 Tariffs on Manufacturing Employment, Producer Prices

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A Federal Reserve study says the U.S. government’s use of import tariffs resulted in higher prices and job losses in the U.S. manufacturing sector, MarketWatch reported Sunday.

“While the longer-term effects of the tariffs may differ from those that we estimate here, the results indicate that the tariffs, thus far, have not led to increased activity in the U.S. manufacturing sector,” Federal Reserve economists Aaron Flaaen and Justin Pierce wrote in the paper.

The top 10 manufacturing industries most affected by foreign retaliatory tariffs were makers of magnetic and optical media; aluminum sheet; leather goods; motor vehicles; iron and steel; sawmills; pesticide; audio and video equipment; computer equipment; and household appliances.

Higher prices also had an impact on the manufacturing sector. Those include the producers of aluminum sheet; steel product; boilers, tank and shipping container; forging and stamping; primary aluminum production; secondary aluminum smelting; architectural and structural metals; transportation equipment; household appliances; and general purpose machinery.

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