Tariffs are taxes, and like any regulation or tax, the increased cost will get passed onto the consumer. Although this is common sense, many still don’t believe that the trade war had an impact on their financial situation. However, just last year, Americans (not the Chinese) spent $1.4 billion per month on trade war taxes.
The Trump Administration’s trade policies and increased tariffs cost American consumers $1.4 billion a month last year. Not many media outlets were there to tell anyone the honest truth that it’s the American public that will pay the tariffs, not the Chinese government.
Regardless of President Donald Trump’s declaration that he is winning the trade war, American farmers and consumers appear to be the casualties. Two separate papers published over the weekend found that the cost of Trump’s duties (tariffs, so theft) to the U.S. economy was in the billions and being borne largely by American consumers. Chinese companies aren’t paying the tariffs. They simply raise their prices and American consumers or businesses shoulder the burden, and it didn’t take businesses long to pass on the cost to the consumer. The papers also declared that some of the world’s leading trade economists have said Trump’s tariffs would be the most consequential trade experiment seen since the 1930 Smoot-Hawley tariffs blamed for worsening the Great Depression.
“This is kind of the worst-case scenario in terms of consumers,’’ David Weinstein, who analyzed the data, said in an interview. “It’s pretty unclear that this trade war is a net win for the economy at this point.’’ According to Time, in a separate paper published on Sunday four economists including Pinelopi Goldberg, the World Bank’s chief economist and a former editor-in-chief of the prestigious American Economic Review, put the annual losses from the higher cost of imports alone for the U.S. economy at $68.8 billion, or almost 0.4 percent of gross domestic product.
Goldberg’s study also found that consumers and U.S. companies were paying most of the costs of the tariffs. Additionally, after factoring in the retaliation by other countries, the main victims of Trump’s trade wars had been farmers and blue-collar workers in areas that supported Trump in the 2016 election.
After accounting for the impact of higher tax (theft) revenue and the higher prices set by domestic producers, the study found the aggregate annual loss for the U.S. economy fell to $6.4 billion, or 0.03 percent of GDP. So increasing taxes doesn’t boost the economy? Who knew, other than everyone with two brain cells to rub together.
I wonder when the REAL WAR is going to happen ?
https://www.breitbart.com/politics/2019/03/03/white-house-fights-chinese-spying-but-legislators-ok-more-chinese-workers/ .wonder if this is considered importing? pffttttt. bwhahahahaha
those free trade agreements might have allowed the public to buy cheep imported stuff. However they did tremendious damage to the Middle Class and the USA manufacturing industry. Those agreements Redistributed the middle class blue collar jobs and wealth to other places outside of the USA. So far I cant tell that Trumps Tariffs have cost me one penny. I simply don’t buy any new imported junk. Its crappy and don’t last. Certainly there are some negatives to Tariffs but the positives are greater. Those free trade agreements where a greater negative completely lopsided. Big Agribuisness is crying because Trump isn’t wanting to give them more welfare in the form of Subsudy Payments. Bullshit article.
a good slave knows that there is competition among the slaves for the lowest pay possible…
First off, there have always been tariffs on almost all trade. Including China imports. Tariffs are tracked by the World Bank and is a searchable database by product and / or country…so if you wan to see what the tariff was for clothing from China in 1987, just look it up.
Tariffs do not work. If you want to fix the trade imbalance, then first add up ALL trade for that country, then simply reduce how much is imported. Stop allowing companies to import.
Not sure how loud the big companies would howl since they are all about profits and could care less about American workers. I’m not saying trade isn’t an issue…just that tariffs do not and have not worked. AND anyone that thinks there is “free trade”…they are wrong as it is easy to prove there have always been tariffs, from every single country, on every single product (with a few limited exceptions on some products).
Tax US companies instead of giving them a tax break on money earned overseas and jobs will come flooding back. The reason big companies keep jobs overseas is because all profit is tax free as long as the money stays overseas. That is the reason Trump allowed the one time deal to bring money back, which many companies did. Instead of investing in jobs here they used it to buy their stock back. Put in rules to stop big companies from screwing over everyone…problem solved.
Something grown in China such as garlic should not be allowed to advertise as coming from California, which is happening. China ships garlic to California then it is distributed across America as coming from California. This deceptive advertising costs American farmers and trucks Americans into buying a foreign product over one grown at home.
that is why they fight tooth and nail against “country of origin” labeling. we export our good stuff and import sheet.
The cost of goods ain’t hurting Americans, even “the poorest of the poor” is morbidly obese. What is the average American adult waist size today? 44″.. 48″.. ???
I always question Mac’s motivation for releasing each story here. Some sort of sick brainwashing of the lowIQ economic-hypochondriac.
If Mac’s purpose of releasing this story was to piss off Americans and NWOTrumpets into demanding the end of a trade war…… the fat obese “Americans” couldn’t care less, as long as the credit and garbage food is easily available.