Stunning New Fed Report Shows Donald Trump Tariffs Cost Jobs In American Manufacturing And Drove Prices Higher – By Jonathan Vankin (Inquisitr) / Dec 28 2019
A new report by the Federal Reserve reveals that any gains brought about by the Trump tariffs were negated by the drag they placed on the U.S. economy.
The punishing tariffs that Donald Trump imposed on imported goods and materials from overseas in 2018 may have helped reduce market competition, giving a boost to some American industries. But whatever benefit the tariffs created was essentially wiped out by the loss of American jobs and increased prices that have held the United States’ manufacturing sector in a stagnant position. That finding comes from a new economic study of the 2018 Trump tariffs conducted by the Federal Reserve Bank and released earlier this week.
The Fed report comes after an independent report in November — based on data released by the U.S. Commerce and Agriculture department — found that the Trump tariffs soaked American consumers for $4.1 billion in the month of September this year alone.
Now, the Fed study has found that Trump’s aggressive tariffs not only siphoned money from American pockets but also placed a drag on the whole economy.
“The 2018 tariffs are associated with relative reductions in manufacturing employment and relative increases in producer prices,” Federal Reserve economists Aaron Flaaen and Justin Pierce wrote, in the paper presented as part of the academic Finance and Economics Discussion Series on December 23.
Some of the industries that took the hardest hit from economic retaliation by countries whose goods Trump slapped with heavy tariffs included automobile makers and producers of household appliances, audio and video equipment, computer equipment, sawmills, pesticides, magnetic and optical media, leather, and metals such as aluminum, iron and steel, according to a MarketWatch summary of the Fed report.
Continue to article: https://www.inquisitr.com/5812441/report-shows-donald-trump-tariffs-cost-jobs/
