consumer info

Trump’s tariffs and trade wars are costing consumers and businesses

“President Donald Trump regularly declares that he’s winning his trade wars. Yet evidence is growing that the U.S. economy is a net loser so far.”

Writing for Bloomburg News,Shawn Donnan reports: “economists from the Federal Reserve Bank of New York, Princeton University and Columbia University found that tariffs imposed last year by Trump on products ranging from washing machines and steel to some US$250 billion in Chinese imports were costing U.S. companies and consumers US$3 billion a month in additional tax costs and companies a further US$1.4 billion in deadweight losses. They also were causing the diversion of US$165 billion a year in trade leading to significant costs for companies having to reorganize supply chains.”

“Significantly, the analysis of import price data by Mary Amiti, Stephen Redding and David Weinstein also found that almost all of the cost of the tariffs was being paid by U.S. consumers and companies. That contradicts Trump’s claim that China is paying the tariffs.”
This policy is the “worst-case scenario” for consumers.

Source: Financial Planning for Women