Donald Trump’s economic policies will disproportionately hit America’s poorest households, which will pay the biggest chunk of a $500bn-a-year burden should the Republican nominee win and introduce tariffs on all US imports, according to Peterson Institute economists.
Trump plans to impose a 10 per cent levy on all US imports and a 60 per cent tax on goods coming from China.
The tariffs will fund his plans to extend a series of tax cuts, which he introduced while president in 2017, beyond 2025.
The Washington-based think-tank’s research, published on Monday, said both policies were “sharply regressive tax policy changes, shifting tax burdens away from the well-off and towards lower-income members of society”.
The paper, by Kim Clausing and Mary Lovely, puts the cost of existing levies plus Trump’s tariff plans for his second term at 1.8 per cent of GDP.
It warns that this estimate does not consider further damage from America’s trading partners retaliating and other side effects such as lost competitiveness.
“This calculation implies that the costs from Trump’s proposed new tariffs will be nearly five times those caused by the Trump tariff shocks through late 2019, generating additional costs to consumers from this channel alone of about $500bn per year,” the paper said.
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Americans are making the Chinese look stupid if that’s there best retaliatory measures . Surely China has to show some sort of power and prove they have something in the locker that can leverage there situation, and if not just keep quiet , but DO not show yourself to be weak with this fluff of a tariff sanction
@GuiltyFalconNo Labels2yrs2Y
Unfortunately when the trade balance is so overwhelmingly in favor of China, they don’t have that much leverage.
The main losers of this trade war will be American consumers who are doomed to pay higher prices for the goods they import with no good domestic alternative. Americans shouldn’t cheer Biden announcing new tariffs as they will be the ones footing the bill…
@BoldIdealisticPatriot2yrs2Y
I think it just reflects how large China’s trade surplus is.
@JusticeBustardForward2yrs2Y
China can afford to do very little as the US legitimately raised tariffs on goods China dumps or attempts to dump in the US at below cost. The US doesn’t dump products in China, at least next to nothing, so there are no legitimate responses China can take.
Raising tariffs on US exports that comply with trade regulations would lead to a swift and probably disproportionate response from the US, and an escalation of a trade war hurts China far more than the US, given China’s trade surplus with the US.
@DolphinBertieGreen2yrs2Y
What China imports are critically important for its economy, like food and advanced manufacturing equipments ranging from etching devices to the advanced CNCs (and many more). They can target those goods.
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