In his unhinged two hour speech at CPAC on Saturday, President Donald Trump gushed over tariffs as “the greatest negotiating tool in the history of our country” as his administration struggles to strike a deal with China to end the trade war he ignited with tariffs last year.
Also over the weekend, however, two comprehensive studies were published that demolish the president’s defense of tariffs – and the findings are grim.
Time Magazine noted on Monday:
“The studies are the most authoritative yet to document the negative effect of Trump’s tariffs on the U.S. economy, though others have shown the negative consequences.”
Despite Trump’s claims to the contrary, American taxpayers are picking up the tab.
Economists Mary Amiti, Stephen Redding, and David Weinstein at the Federal Reserve Bank of New York, Princeton University, and Columbia University found that American consumers are footing the bill for most of Trump’s $250 billion tax penalty on Chinese imports, specifically products that use steel and aluminum.
And the price tag is steep. The economists’ paper calculated that Trump’s tariffs have resulted in $3 billion in additional taxes per month on consumers and $1.8 billion in additional losses to American businesses. A further $165 billion has been siphoned off from American trade, mainly due to a collapse in supply chains, the trio’s study determined.
“This is kind of the worst-case scenario in terms of consumers,” Weinstein said in an interview. “It’s pretty unclear that this trade war is a net win for the economy at this point.” Weinstein added that additional research is being conducted to determine how much of a hit investment has taken because of uncertainty spurred by the president’s trade war.
So much winning.
Primetime lying con/man .
— Robert Thomas (@rstintegrity1) March 5, 2019
Meanwhile, down on the ranch… pic.twitter.com/N14bJxAjGS
— Mark Eccleston (@MarkWEccleston) March 5, 2019
But its worth it …
If you can spare $3 BILLION a month
— airforcevet43 (@airforcevet43) March 4, 2019
US Tax Payers farm welfare will be needed for decades to come. 2019 China listened to the US Nationalist hypocrite and is expanding AG sectors by 5.33 million hectares. Thats alotta soybeans, a frickin lotta beans! Why wasn't the Great Wall of Waste included in the revised NAFTA?
— Jon Johns (@JonJohns69) March 4, 2019
A second study yielded the same conclusions.