New York Federal Reserve Report "Trump's First Term Tariffs Hit US Companies"

A report from the New York Federal Reserve Bank (NY Fed) stated that U.S. companies were adversely affected by import tariffs imposed during the first term of the Trump administration.

According to major foreign media on the 6th (local time), the NY Fed report noted that stock prices generally fell on the days when the first-term administration of then-President-elect Donald Trump announced import tariffs.

Donald Trump, President-elect of the United States, is dancing after delivering his acceptance speech for the Patriot of the Year award selected by Fox Nation on the 5th (local time). Photo by Getty Images Yonhap News

The report stated, "Because global supply chains are complex and foreign countries retaliate, it is difficult to benefit from tariffs," adding, "Research results showed that companies experienced significant losses in both expected cash flows and actual outcomes." It also noted, "Losses were widespread, with companies exposed to China suffering the greatest losses."

Mary Amiti, head of labor and product market research, and others said, "One of the main motivations for imposing tariffs on imports is to protect U.S. companies from foreign competition," but "most companies experienced significant valuation losses on the day tariffs were announced. These financial losses have been proven to lead to declines in profits, employment, sales, and labor productivity."

This analysis contrasts with the perspective of Trump and his advisers, who viewed tariffs as a means to increase federal government revenue. Earlier, Trump had announced during the election campaign that he would impose a 60% tariff on Chinese goods and a universal tariff of 10-20% on all imports. On the 25th of last month, he claimed that on his first day in office, he would impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China.