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Fed: Trade Compliance at What Cost? Lessons From USMCA Automotive Trade
July 19, 2025
WASHINGTON, July 19 -- The Federal Reserve issued the following Fed Notes article by Spencer Bowdle and Fariha Kamal/1:

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Trade Compliance at What Cost? Lessons from USMCA Automotive Trade

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U.S. trade policy shifted dramatically in 2025--the average effective tariff rate increased from 2.3 percent in 2024 to 13.1 percent as of June 13, 2025./2 This dramatic rise in tariffs reflects increases for a wide variety of products across all tradin . . .

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