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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump Tariffs Shedding $1.4 Billion a Month in Consumer Income, Study Says
President Donald Trump has used tariffs as a negotiating tactic with international governments. But those tariffs might be hurting U.S. consumers more than anyone else, according to a new study.
The tariffs and Trumps broader trade policies with foreign governments reduced U.S. consumers monthly income by $1.4 billion by November 2018, according to a study from the Federal Reserve Bank of New York and both Princeton and Columbia Universities. The study, which was obtained by CNBC, found that tariff costs were passed on to the goods consumers have been buying. The countries that were slapped with U.S. tariffs didnt take on any of the cost burden.
Tariffs have been a core component in the Presidents negotiations with the Chinese government and others. The Trump administration has argued that tariffs could be used to improve trade deficits with China and protect American intellectual property.
However, the researchers found that with each new tariff on goods from China, the costs associated with that were passed on to U.S. consumers. Between January and November 2018, a total of $6.9 billion in U.S. income was lost to the tariffs, according to the study.
In addition to the costs associated with the tariffs, the researchers found that the U.S. was hit by less variety in imports. Companies operating overseas that didnt want to face tariffs ultimately decided against exporting to the U.S. And that ultimately gave consumers less choice in the products they bought.
http://fortune.com/2019/03/26/trump-tariffs-income-impact/
at140
(6,110 posts)their stocks are down, their economy has slowed, my Chines contacts are nervous about their jobs, and now Europe is also negotiating trade deficits with China following example of United States.
Thomas Hurt
(13,903 posts)at140
(6,110 posts)by reducing demand for their exports. But as you might know, China fudges their economic data.
UniteFightBack
(8,231 posts)rooting for China.
keithbvadu2
(36,962 posts)A tariff is a tax on Americans thanks to Trump.
KelleyKramer
(8,985 posts)Everything Trump touches turns to shit