(CNN/Gray News) – It appears Donald Trump’s tariffs may have backfired.
A new Federal Reserve study says the president’s strategy of placing tariffs on imports ultimately led to job losses and higher prices.
“We find that the 2018 tariffs are associated with relative reductions in manufacturing employment and relative increases in producer prices,” the study says.
“For manufacturing employment, a small boost from the import protection effect of tariffs is more than offset by larger drags from the effects of rising input costs and retaliatory tariffs.”
Trump's tariffs put levies on things like steel, aluminum, motor vehicles, computers and leather goods.
Economists with the Fed say tariffs on Chinese goods started a trade war, which resulted in retaliatory tariffs and higher prices in 10 primary U.S. industries.
The Fed said in September that American consumers and businesses paid more than $7 billion in tariffs.
U.S. and Chinese officials announced a “Phase 1” trade agreement this month.
The deal will reduce tariffs and China will buy more U.S. farm products.