What is The Economic Impact of U.S. Tariffs?
The Trump administration has imposed and threatened several rounds of tariffs in 2018, and other countries have responded to these measures in kind. According to the Tax Foundation Taxes and Growth Model and an article by Erica York and Kyle Pomerleau, on which they analyze the effects of enacted, threatened, and retaliatory tariffs, it will have a big impact on the United States economy. Tariffs damage economic well-being, and lead to a net loss in production and jobs, and lower levels of income.
According to the Tax Foundation model, the tariffs enacted so far by the Trump administration would reduce long-run GDP by 0.06 percent ($15.7 billion) and wages by 0.04 percent and eliminate 48,585 full-time equivalent jobs. If the Trump administration enacts additional tariffs on automobiles and parts and additional Chinese tariffs, GDP would fall by an additional 0.45 percent ($111.41 billion), resulting in 0.29 percent lower wages and 345,449 fewer full-time equivalent jobs.
Other countries have also announced intentions to enact tariffs on U.S. exports. If these tariffs are fully enacted, we estimate that U.S. GDP would fall another 0.09 percent ($23 billion) and cost an additional 71,681 full-time equivalent jobs.
If all tariffs announced thus far were fully enacted, U.S. GDP would fall by 0.60 percent ($150.22 billion) in the long run, effectively offsetting one-third of the long-run impact of the Tax Cuts and Jobs Act. Wages would fall by 0.39 percent and employment would fall by 465,715.
For further details on this visit: https://taxfoundation.org/tracker-economic-impact-tariffs/?utm_source=Tax+Foundation+Newsletters&utm_campaign=57233ab26f-EMAIL_CAMPAIGN_2018_06_01_01_09_COPY_10&utm_medium=email&utm_term=0_8387957ec9-57233ab26f-429272993&mc_cid=57233ab26f&mc_eid=1267030dc2#enacted
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