🚨Any "positive effects from import
protection" are "offset by larger negative effects from rising input costs and retaliatory
tariffs. Higher tariffs are also associated with relative increases in producer prices via
rising input costs."🚨
protection" are "offset by larger negative effects from rising input costs and retaliatory
tariffs. Higher tariffs are also associated with relative increases in producer prices via
rising input costs."🚨
The key point (which may sound familiar): global supply chains and the growth of foreign export markets have magnified the costs of tariff wars for today's US manufacturers. Tariffs were bad before; they're *really bad* now.
This big revelation, of course, is not very revelatory: industrial inputs have long been around half of all US imports, and US exports have long been increasing (until recently!). Meanwhile...
...manufacturers across the USA have been telling the Fed (eg, beige books), the media, and the US government that the trade wars are hurting them here and abroad, and they have filed *tens of thousands* of tariff "exclusion requests" seeking relief.
No surprise, then, that new taxes on imports and foreign retaliation would hurt US manufacturing. It's not exactly rocket science.
But is IS good to put virtual pen to virtual paper and calculate/document the pain that's been staring us in the face for over a year.
But is IS good to put virtual pen to virtual paper and calculate/document the pain that's been staring us in the face for over a year.
It's also another reminder of the irony of the Trump economy: the things he disdains/ignores - consumers & services - are fueling the US economy, while the things he supposedly champions - farmers & manufacturers - suffer.
FLASHBACK: "outcomes would likely be worse if similar [protectionist] policies were implemented today, because of increased American integration into the global economy, the proliferation of global supply chains, the rise of other economic powers, and the creation of the WTO..."
"...Thus, protectionism today would yield even more pain for even less gain." - Some dude in 2017.
cato.org/sites/cato.org…
cato.org/sites/cato.org…
