Who is really paying for Trump's China tariffs?
"An industry-by-industry analysis by the Federal Reserve showed that tariffs did help boost employment by 0.3%, in industries exposed to trade with China, by giving protection to some domestic industries to cheaper Chinese imports.
But these gains were more than offset by higher costs of importing Chinese parts, which cut manufacturing employment by 1.1%. Retaliatory tariffs imposed by China against U.S. exports, the analysis found, reduced U.S. factory jobs by 0.7%."
My favorite quote from the brilliant free market economist himself:
“I happen to be a tariff person because I’m a smart person, OK?”
Brookings, which I believe may be more left leaning
"And even those jobs that have been created have come at great cost: studies suggest American consumers paid about $817,000 in higher prices attributable to the tariffs for every job created in the washing machine industry and $900,000 in the steel industry."
You
I am not an economist but I would think that tariffs are not an efficient way to create job growth. If we apply a tariff to chinese goods, to offset the tariff, they would raise prices. As a result, US consumers would pay more for goods. And since we import a lot, we US consumers are worse off.
I am sure more of this can only be good for American workers.
I mean, when you let China run rampant with their subsidies and zero cost labor, most rational economic players would flock to the Chinese.
American companies pay the import tariffs, which are then absorbed, or more often passed along to American consumers via higher prices. This has been one of Trump’s many persistent big lies since he started campaigning, but the average voter is too stupid to realize it.
Anyone advocating for increased protectionism to balance out any trade with China should check out how that’s worked for Brazil the last 25 years.
Every single reputable economist, regardless of the school of thought, say tariffs don't balance trade deficits. (Because they never have in real life!).
Tariffs are nothing but political moves that almost every single president has used in some way to gain political favors.
Devaluing your currency, taxing capital flows, and somehow decreasing national spending on the other hand have always worked.
https://corporatefinanceinstitute.com/resources/knowledge/economics/inf….
What economists are your reading?
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