New Act Mandates Fed Study on How Tariffs Since 2017 Hit Consumer Prices and Small Businesses

The “Protecting Families from Inflation Act” kicks off with a straightforward mandate: figure out exactly how tariffs have been hitting our wallets. Specifically, Section 2 requires the Federal Reserve System’s Board of Governors—the Fed—to conduct a comprehensive study on the economic impact of U.S. tariffs implemented since 2017.

The Real Cost of Trade Wars

This isn't just an academic exercise. The Fed is tasked with determining the combined effect of every tariff put in place since 2017 on two key areas: consumer prices and small businesses. If you’ve noticed that imported tools cost more, or that the price of your favorite electronics seems to keep climbing, this study is designed to put a number on how much of that increase is directly due to trade policy. The focus is on tracking the cost changes that result from these trade actions, connecting policy decisions directly to the price tags we see every day.

Who’s Doing the Homework, and What Happens Next?

Mandating the Fed to do this study is a big deal because they are generally seen as objective economic analysts. They have the resources and expertise to dig deep into trade data and inflation metrics. For the average person, this means the resulting report should be a clear, data-backed assessment of whether tariffs aimed at protecting domestic industries have inadvertently acted as a tax on consumers and small businesses.

For example, if you run a small construction firm and rely on imported steel or specialized machinery parts, the study should quantify how much those tariffs have increased your operating costs. Similarly, for the person buying everyday goods, the report aims to show how much more you're paying for imported clothing, appliances, or even certain foods.

The Deadline and the Data

The Fed doesn't have forever to complete this massive data dive. They must submit their final report to Congress detailing all their findings within 270 days of the bill becoming law. While this section doesn't change any existing laws or tariffs, it arms Congress with crucial information. If the study concludes that tariffs are a significant driver of inflation for families and a major burden for small businesses, it gives future lawmakers the evidence they need to consider adjusting trade policies. Essentially, this bill is about getting the facts straight so that policy decisions about trade and inflation can be based on hard data, not just assumptions.