The verdict is in on President Donald Trump’s trade war, and the result is almost certain to draw a furious Twitter response from him.
A new study from the Federal Reserve shows that the massive tariffs imposed on China and some other nations has led to job losses in the United States and significantly higher prices for American consumers:
“We find that tariff increases enacted in 2018 are associated with relative reductions in manufacturing employment and relative increases in producer prices.”
MarketWatch reports that 10 major industries were negatively impacted by tariffs and the overall trade war. Those include producers of optical and magnetic media, leather goods, aluminum, iron and steel, motor vehicles, household appliances, sawmills, audio and video equipment, pesticide, and computer equipment:
“While the longer-term effects of the tariffs may differ from those that we estimate here, the results indicate that the tariffs, thus far, have not led to increased activity in the U.S. manufacturing sector.”
The tariffs on aluminum and steel were first imposed in March of 2018, and at the time Trump alleged that “aggressive foreign trade practices” related to those trade goods was an “assault on our country” and the U.S. steel industry.
Since then, Trump and China have traded blows, issuing tariffs and other retaliatory measures that have only been successful in raising the cost of goods for U.S. companies which are then passed along to consumers and result in a hidden tax increase when a purchase is made.
In recent weeks, Trump has said that he has reached a tentative agreement with China to ease tariffs on both sides of the trade dispute, but it remains unclear if or when a final trade deal will be agreed to by the two nations. Some have suggested that China is slow walking any final deal in the belief that Trump will fail in his bid for a second term in office.
As recently as September, an analysis showed that U.S. consumers and businesses paid a record $7.1 billion in tariffs.
Featured Image Via NBC News