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"exaggerate the impact" is a correct and usable phrase in written English.
You can use it to describe a situation in which someone or something is making something seem more important than it really is. For example, "The media tends to exaggerate the impact of minor events in order to attract viewers."
Exact(34)
It would be easy to exaggerate the impact of teleconferencing on business travel.
The tendency to exaggerate the impact of technological innovation follows from an artifact of historical consciousness.
This approach can exaggerate the impact of culture (great-power diplomacy, too, led to the trenches).
The very shortfalls that have occurred so far are likely to exaggerate the impact in 2001.
It is impossible to exaggerate the impact Angels had a quarter of a century ago.
This is destabilizing the international system — but let's not exaggerate the impact on our own economy.
Similar(26)
The appropriation of Pearl Harbor to exaggerate the impacts of the Sony and OPM hacks came at a time when Director of National Intelligence James Clapper was telling Congress that "Cyber Armageddon" scenarios are unlikely and that the OPM hack was not a cyber attack.
He was quoted as saying that the maps illustrating the coral mortality exaggerated the impact, and that the exaggeration "suits the purpose" of the people sending it out.
Republicans say Democrats are exaggerating the impact of any vote.
First, faith exaggerates the impact that CEOs have on companies.
Tenant advocates said the real estate industry was exaggerating the impact of the decision.
More suggestions(18)
exaggerate the influence
underestimate the impact
worsen the impact
inflate the impact
magnify the impact
accentuate the impact
exacerbate the impact
exaggerate the incidence
oversell the impact
overemphasize the impact
aggravate the impact
over estimate the impact
exaggerate the consequences
overestimate the impact
exaggerate the effect
exaggerate its effects
exaggerate the effects
overstate the impact
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com