It turns out that Donald Trump’s alleged expertise on international trade policy is, shall we say, a bit overstated.
Put another way, the president’s decision to impose tariffs on imported goods has harmed U.S. taxpayers and cost American jobs he vowed would return in droves.
Whose analysis is this? The Federal Reserve has released a study laying out what it says has been the impact of the tariffs across the land. It hasn’t been good, according to the Fed analysis.
This likely will bring some recrimination from Trump, who will say the numbers are wrong, they’re cooked up in some star chamber kitchen and that they’re intended to throw the upcoming election into his opponents’ corner.
As The Hill reports: “We find that tariff increases enacted in 2018 are associated with relative reductions in manufacturing employment and relative increases in producer prices,” the report by Fed economists Aaron Flaaen and Justin Pierce reads.
This is pretty in line with what many economists have said all along about tariffs, which is that they don’t harm the producers of the goods being imported into this country, but that they inflate the prices we pay here.
Trump is having none of it. He keeps insisting that tariffs are part of a successful strategy to “put America first.” He wants to punish countries that don’t play fair in the game of international trade. I certainly understand the president’s stated reason for wanting a fairer playing field.
Why, though, must he invoke tariffs that do two things immediately? They boost prices on imported goods, which is a de facto tax and they rattle the daylights out of financial markets, affecting the retirement portfolios of millions of Americans … such as, well — my wife and me!
This so-called trade policy damn sure isn’t making America great again.