Another study recently was released that found to what extent the trade war with China impacted the U.S. economy and American workers.
“An examination of all of all the ways in which such tariffs, accompanied by retaliation by U.S. trading partners, affects purchasing and hiring decisions demonstrates that on balance U.S. farmers, manufacturers, services providers and their workers experience greater losses than gains. In some instances, the tariff actions erase all of the anticipated gains from tax reform,” according to the Trade Partnership Worldwide study.
The “Tariffs Hurt the Heartland” study examines the economic effects of actual and threatened tariffs on the U.S. economy and U.S. workers one to three years after they have been in effect.
The study found tariffs reduce the dollar value of U.S. gross domestic product by 0.37%, a reduction that will occur each year the tariffs are in effect.
The average American family of four will have to find an extra $767 to pay for higher costs of goods and service resulting from tariffs for every year they are in effect.
U.S. exports of goods and services overall decline by 5.6%, or $131.7 billion annually, as a result of the tariffs. This is due primarily to the impact of the U.S. duties on imports rather than retaliation of U.S. exporters.
The largest declines to the world — not just the retaliating countries in terms of percentage reductions — are felt by U.S. exports of iron and steel, -42.7%; oilseeds, -15.7%; footwear and other leather products, -18.6%; wood products, -13.3%; and nonferrous metals, -12.8%.
Net U.S. jobs decline by 937,700 over one to three years after the tariffs are imposed, including a 59,300 loss in agriculture related jobs, the study stated.
The study is filled with similar findings based on different scenarios, none of which is good.
Facts are facts, yet nothing is being done about it and the hits just keep coming.
The revised North American Free Trade Agreement — now the U.S.-Mexico-Canada Agreement — was signed by President Donald Trump, Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau last November. Each country’s legislature has yet to ratify it.
Negotiations between the United States and China on trade seems limited to tweets, false hope and shallows promises.
In the meantime, the politicians continue to collect their paychecks and the Corn Belt suffers. This study and many others provide the proof.
When will others listen?