President Donald Trump and Vice President Mike Pence examine a wheel loader from Caterpillar Inc. on the South Lawn of the White House in 2017.
President Donald Trump’s strategy to use import tariffs to protect and boost U.S. manufacturers backfired and led to job losses and higher prices, according to a Federal Reserve study released this week.
“We find that the 2018 tariffs are associated with relative reductions in manufacturing employment and relative increases in producer prices,” concluded Fed economists Aaron Flaaen and Justin Pierce, in an academic paper.
While the tariffs did reduce competition for some industries in the domestic U.S. market, this was more than offset by the effects of rising input costs and retaliatory tariffs, the study found.
“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 study said.
Tit-for-tat trade retaliation is an idea best relegated to the past, given the presence of globally […]
Everyone in Congress new these tariffs would be a disaster so why did they let them happen????
Stephan, thanks for the article and your comments. Is there a single source for your comments about Trump’s financial failings that you posted? That information is not in Market Watch. Thanks.
Not sure what you are asking. SR has thousands of comments about Trump, and you can also go to Academia.edu, and find many papers on this issue.
— Stepha