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Trump’s Trade Wars And Steep Tariffs Have Cost US Consumers Over $20 Billion: Analysis


Trump’s Trade Wars And Steep Tariffs Have Cost US Consumers Over $20 Billion: Analysis

President Trump’s trade wars and steep tariffs have cost U.S. consumers over $20 billion, according to a pro-trade advocacy group’s analysis, reports The Hill.

According to the campaign Tariffs Hurt the Heartland, which commissioned the data analysis from market research firm Trade Partnership Worldwide, Americans are feeling the effects of Trump slapping billions of dollars in tariffs on goods imported from China, as well as instituting a slew of tariffs on steel and aluminum on close trade partners.

The retaliatory tariffs that China, Europe, and other trade partners have imposed on the United States have cost American exporters almost $16 billion, according to the analysis.

There are currently tariffs on $250 billion dollars’ worth of imports from China as a result of the Trump Administration’s use of Section 301 of the Trade Act of 1974.

A new report by IHS Markit released Monday outlines the impact of tariffs on the equipment manufacturing industry and the broader U.S. economy.

“This report shows that tariffs continue to take a toll on U.S. equipment manufacturers, who will pay significantly more to manufacture equipment in the United States in the coming years,” said Dennis Slater, president of the Association of Equipment Manufacturers (AEM). “Tariffs on steel, aluminum, and Chinese imports, as well as the potential for additional tariffs, are driving up the cost of production, delaying capital investments, and impeding job creation for our more than 1,000 member companies.”

“While we agree with the Trump administration’s concerns regarding China’s unfair trade practices, including weak intellectual property protections, restrictions on foreign investment, and policies that limit competition, tariffs only hurt America’s businesses, workers, and families,” said John Garrison, chairman of the board, president and CEO of Terex Corporation and an AEM board member. “We urge the Trump administration to negotiate solutions to these long-standing issues with China, de-escalate economic tensions, and remove broad unilateral tariffs.”

The report, “The Economic and Industry Impact of Protectionism Tariffs on the Off-highway Equipment Sector,” estimates the impact of the Trump administration’s Section 232 and Section 301 tariffs.

As it relates to the long-term impact on the U.S. economy, the report notes:

  • Placing tariffs on about $265 billion of imports will hurt the U.S. economy, largely from the direct effect of higher prices, yielding average lost GDP of $29 billion a year for 10 years.
  • The effect on employment is negative; the tariffs will suppress domestic job gains by 260,000 over 10 years.
  • Consumers will pay higher prices and reduce their real spending by $23 billion per year throughout the forecast horizon (ending in 2027).


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