President Donald Trump once boasted that a trade war with China would be “easy,” and that the outcome would be a “big” win for Americans overall.
That was 23 months ago, and while some progress has been made, there are no signs that the current trade crisis is going to end anytime soon.
As far as the trade wars overall go, they are not “big” wins for Americans, either. According to a Congressional Budget Office report, the trade strategy by the Trump administration to use tariffs to force other nations to negotiate better terms will result in the average American family paying $1,277 this year, HuffPost reported.
The figure was calculated by looking at the negative effects of tariffs on economic goods as well as their causing consumer goods to have higher prices overall.
“Tariffs are expected to reduce the level of real GDP by roughly 0.5 percent and raise consumer prices by 0.5 percent in 2020,” the report says.
Trump trade war #tariffs will slow economic growth and increase prices for average American family by $1277 this year alone, according to the Congressional Budget Office. https://t.co/vrjItAkoH7 # via @HuffPostPol
— Summerton News (@SummertonNews) February 9, 2020
To put it into simpler terms, the $1,277 figure amounts to a 2 percent tax toward a middle-class family earning roughly $63,000 per year (what the Federal Reserve considers the median family income in the U.S.).
The tariffs are hurting American businesses in major ways as well. Last fall, a report from a nonprofit pro-business group called “Tariffs Hurt the Heartland” found that the trade war, up to October of 2019, had cost U.S. companies more than $34 billion, Axios reported.
“Confidence in the U.S. economy is waning, and leading retailers can’t successfully plan for the future when their supply chains continue to be distorted by tariffs,” business lobbyist Jennifer Safavian said, according to the organization’s press release.