FRANKFURT/WASHINGTON ¨C U.S. companies and consumers are bearing the brunt of the country¡¯s new import tariffs, early indications show, contradicting assertions by U.S. President Donald Trump and complicating the Federal Reserve¡¯s fight against inflation.
Trump famously predicted that foreign countries would pay the price of his protectionist policies, wagering that exporters would absorb that cost just to keep a foothold in the world¡¯s largest consumer market.
But academic studies, surveys and comments from businesses show that through the first months of Trump¡¯s new trade regime it was U.S. companies that footed the bill, passing some of it on to the consumer ¡ª with more price hikes likely.
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