by Michael S. Derby
Yahoo! Finance
NEW YORK (Reuters) – The U.S. economy could be in for a fresh inflation jolt if the Trump administration fully follows through with tariffs on Chinese imports, a New York Federal Reserve research paper said on Wednesday.
At issue is President Donald Trump’s announcement of import taxes on low-cost “de minimis” packages from China. Trump had sought to repeal the duty-free arrangements for these small-value goods entering the U.S., but then paused that action at the start of this month. The president has taken a similar approach with tariffs on other major U.S. trade partners.
The New York Fed paper argued that the small-scale shippers of Chinese products had been key to blunting the impact of tariffs during Trump’s 2017-2021 presidency.