Research on the Total Cost of Tariffs

Research on the Total Cost of Tariffs

Executive Summary Former President Trump unilaterally imposed numerous tariffs on a variety of goods including, but not limited to, imports from China and steel and aluminum imports from across the world, creating upward pressure on prices in the United States.…

Will President Trump’s tariffs work to deter other nations’ unfair trade practices? Or simply inspire retaliation? AAF’s Jackie Varas discusses the impact of trade barriers in this new 60-second video.

Aluminum tariffs translated into price increases almost immediately in the United States.

Research shows that the costs of tariffs thus far have been completely passed on to U.S. consumers, raising prices in affected sectors and harming the economy by depressing both imports and exports.

This study shows that over one quarter of total manufacturing jobs created between 2010 and 2016 – roughly 220,000 jobs – can be directly attributed to increases in imports.

U.S. supply chains are well diversified, with China supplying only 18 percent of total active pharmaceutical ingredient imports, 9 percent of total antibiotic imports, and less than 1 percent of total vaccine imports.

The order will have a small but negative impact by increasing the cost and reducing the supply of medical goods procured by the federal government.

USMCA would not drastically impact North American trade. The changes it does make to NAFTA, however, are a mixed bag.

The agreement, set to go into effect on February 14, has seven chapters covering intellectual property, technology transfer, agriculture trade, financial services, currency issues, dispute resolution, and expanding Chinese imports.

These tariffs are the latest of many new trade barriers that the Trump Administration has imposed, but they are markedly different than the president’s unilateral tariffs on China and others.

It replicates, at least in part, the benefits the United States would have enjoyed if President Trump had not prematurely withdrawn from TPP.  

The fact that the RMB’s depreciation occurred shortly after the United States’ latest tariff announcement, given that the RMB floats within a band, is no coincidence.

64 percent of U.S. imports from China are used in domestic production. A simple analysis shows that the tariffs will do more harm than good to the U.S. goods-producing industry.

Imposing a 25 percent tariff on all consumer goods from China, as President Trump has suggested, could raise the prices of these goods by $38.2 billion per year.

The trade deficit is mainly driven by macroeconomic factors such as national saving and foreign investment in the United States - not trade policy

This analysis finds that imposing a new reciprocal trade policy through equal tariffs on our current trade partners could increase nationwide prices by over $60 billion per year, not counting the cost of retaliation.

Historical evidence suggests that placing additional national security tariffs on imported automobiles and automobile parts will negatively affect the U.S. economy, harming both U.S. consumers and producers.

In total, national security tariffs on steel and aluminum could increase the amount consumers are expected to spend by $7.5 billion per year, not including the cost of retaliation.

In term of absolute dollars, Louisiana, Washington, and Texas will have the most exports facing retaliatory tariffs from China. Meanwhile, Hawaii, North Dakota, and Washington send the highest proportion of their exports to China, meaning the tariffs will especially impact them, as well.

Withdrawing from NAFTA would negatively impact over $1 trillion of North American trade, jeopardize 14 million U.S. jobs, expose U.S. businesses to $15.5 billion in new tariffs, and could cost consumers at least $7 billion annually.

AAF’s Director of Immigration & Trade Policy Jackie Varas debunks the popular belief that China provides the United States most of its medicines and medical goods.

AAF’s Director of Immigration and Trade Policy Jacqueline Varas reviews the highlights of an exceptionally busy month in the world of trade policy.

AAF's Director of Immigration and Trade Policy Jackie Varas reviews President Trump's significant changes to U.S. trade policy in 2018 and their effects.

AAF's Director of Immigration and Trade Policy Jackie Varas assesses the four main things to watch in trade policy this coming year.

Also, check out "Trump's Tariffs in Review" as we review President Trump's significant changes to U.S. trade policy in 2018 and their effects.