How Are U.S. Tariffs Impacting The Nation’s Economy? Two New Reports Reach Differing Conclusions
According to a new study by IHS Markit Economics and the Association of Equipment Manufacturers, the United States’ Section 232 and Section 301 tariffs have adversely affected the U.S. economy. Specifically, the report found, if kept in place, the penalties would:
- Yield average lost gross domestic product of $29 billion per year for 10 years;
- Suppress domestic job gains by 260,000 over 10 years;
- Reduce real consumer spending by $23 billion per year;
- Have a negative impact on many downstream industries;
- Reduce output from the machinery and equipment, computer and electronics, and electrical equipment sectors; and
- Increase the costs of producing agricultural and construction equipment by six percent.
A new report from the White House released last week focused on the benefits of the Section 232 and Section 301tariffs, however. The Economic Report of the President explained the United States collected $14.4 billion in revenue from the penalties in 2018, raised the average U.S. applied tariff from 1.5 percent to 2.6 percent, and resulted in a 10 percent increase in aluminum production that added 100 jobs and a six percent increase in steel production that resulted in 6,200 new jobs.