Federal Reserve: Trump's tariffs are having the opposite effect from what he intended

The Federal Reserve has just released an explosive new study finding that President Donald Trump's tariffs have led to higher consumer prices and fewer manufacturing jobs.

Both Aaron Flaaen and Justin Pierce of the Federal Reserve Board authored the study and it blames the "unprecedented tariff increases" that Trump has imposed on a number of countries.

Oddly, one of the stated goals of the tariffs by the Trump administration was to "boost" the manufacturing sector, not hurt it. But, that's precisely what it has done. In their conclusion they cite:

"Our results suggest that the tariffs have not boosted manufacturing employment or output, even as they increased producer prices. 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."

President Trump is solely to blame for this. He has routinely ignored the advice of his senior advisers - including Treasury Secretary Mnuchin, and Kevin Hassett, chairman of the Council of Economic Advisors. Hassett resigned because of the tariffs in June.

Trump has repeatedly stated on social media and in speeches that other countries will end up paying more because of the tariffs, even when fact-checked and told that's not how tariffs work. Americans pay more to import those goods, not the other way around.

According to the study, here are the 10 U.S. industries that have seen the largest increases in prices (a tax on Americans) since they were implemented in 2018:

1. Aluminum

2. Electrical lighting equipment

3. Home and institutional furniture and kitchen cabinets

4. Semiconductor and electronic components

5. Iron, steel mills and ferroalloy

6. Aluminum sheet, plate and foil as well as rolling, drawing and extrusions

7. Household appliance manufacturing

8. Other electrical equipment and components

9. Leather

10. Industrial machinery