Trump’s trade war cost U.S. economy $7.8 billion in 2018: study By Reuters

0
26
© Reuters. FILE PHOTO: Imported automobiles are parked in a lot at the port of Newark New Jersey


© Reuters. FILE PHOTO: Imported automobiles are parked in a lot at the port of Newark New Jersey

TedsWoodworking Plans and Projects

WASHINGTON (Reuters) – President Donald Trump’s trade battles cost the U.S. economy $7.8 billion in lost gross domestic product in 2018, a study by a team of economists at leading American universities published this week showed.

Authors of the paper said they analyzed the short-run impact of Trump’s actions and found that imports from targeted countries declined 31.5 percent while targeted U.S. exports fell by 11 percent. They also found that annual consumer and producer losses from higher costs of imports totaled $68.8 billion.

“After accounting for higher tariff revenue and gains to domestic producers from higher prices, the aggregate welfare loss was $7.8 billion,” or 0.04 percent of GDP, the researchers said.

The study was authored by a team of economists at the University of California Berkeley, Columbia University, Yale University and University of California at Los Angeles (UCLA) and published by the National Bureau of Economic research. https://www.nber.org/papers/w25638

Having dubbed himself the “tariff man,” Trump pledged on both the campaign trail and as president to reduce the trade deficit by shutting out unfairly traded imports and renegotiating free trade agreements.

Trump has pursued a protectionist trade agenda to shield U.S. manufacturing. Washington and Beijing have been locked in a tit-for-tat tariff battle for months as imposing unilateral tariffs to combat, and Trump has imposed tariffs that have roiled the European Union and other major trading partners.

The authors said while U.S. tariffs favored sectors located in “politically competitive” counties, the retaliatory tariffs imposed on U.S. goods have offset the benefits to these areas.

“We find that tradeable-sector workers in heavily Republican counties were the most negatively affected by the trade war,” the researchers said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here