Trump import taxes could fall heaviest on Midwest and Southeast, Richmond Fed says

Some working estimates of the result of tariffs President Trump imposed in 2018 and 2019 were a net loss of jobs and output to the U.S. economy, the authors noted, with the current more aggressive set of tariffs risking damage also.
"Ultimately, the proposed tariffs may raise input costs, disrupt supply chains and result in higher consumer prices, potentially outweighing any targeted employment gains in protected industries," Richmond Fed economists including bank vice president
"Policymakers should carefully weigh these costs against intended policy goals and consider targeted measures to support the industries and communities most adversely impacted by these tariff changes."
The analysis, published just hours before Trump is to announce potentially sweeping new import levies, looked at import shares by industry across U.S. counties, and estimated what a range of different import tax scenarios would mean in practice - some including steps already taken by Trump, like a 25% tax on autos and steeper levies on goods from
Average tariffs reach their peak under the most aggressive scenario, which includes a 25% tax on imports from the
Trump is due to make an announcement at
"The 2025 tariff proposals represent significant shifts in U.S. trade policy, with potentially large economic impacts varying across industries and regions," the analysts wrote. Earlier tariffs focused on
The new measures, however, "targeting
The authors caution their analysis is static and does not account for the full scope of tariff impacts, from changes in consumer demand as prices shift to changes in investment patterns or supply chains that could lead to more domestic production.
But "adjustments take time," they wrote, while the immediate impact would fall particularly hard on auto and metal-intensive industries, and on states including
(Reporting by
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