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Tariff Impacts on Final Prices Examined

Imports make up about a quarter of goods supplied to the US economy. From an industry output perspective, around 10% of the price paid for goods in the US is linked to imported intermediate inputs. For certain sectors such as automotive or machinery this is higher. For example, we find that a 20% tariff is could increase prices of automotive goods by 4%. This article which includes an interactive dashboard illustrates the importance of imports for both overall supply of commodities as well as industrial output.

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