Trade

Trump’s Tariffs Will Soon Cost Americans $1,000 Per Year

JM Ashby
Written by JM Ashby

Trump will impose tariffs on $150 billion in Chinese goods on September 1st followed by tariffs on another $150 billion in Chinese goods on December 15th and the total, according to J.P. Morgan, will cost American consumers about $1,000 per year.

Unlike Trump's previous tariffs which have been passed down to consumers through higher costs for goods and services -- totaling about $600 per year in higher costs -- Trump's next tariffs will hit consumers directly the world's largest bank says.

From CNBC:

"What distinguishes China Phase III tariffs from preceding tariffs is the impact to Consumption and Capital goods whereas previous tariffs focused more on Intermediate goods," J.P. Morgan head of U.S. equity strategy Dubravko Lakos-Bujas said in a note to clients. "This suggests that the expected consumer impact should be larger in the latest round."

Lakos-Bujas said unlike the agriculture sector, which is receiving subsidies from the government to offset some of the tariffs, "there is no simple way to compensate consumer."

There is no simple way to compensate consumers, but I expect Republicans may try to in 2020.

I wouldn't be surprised if Trump and the GOP return to Washington after the holidays and call for more tax cuts or some other form of broad stimulus spending. It will be an election year, after all.

Their solution won't be to claw back the executive power Trump has abused to wage his trade war in the first place; their solution will be to throw more money at the problem.

Paying for all of this will be someone else's problem eventually, right?

  • Draxiar

    “Paying for all of this will be someone else’s problem eventually, right?”
    Modern Republicanism in a nutshell.

  • muselet

    No tax cuts have been proposed yet, but

    The US central bank should consider cutting interest rates by one percentage point and introduce “some quantitative easing” stimulus measures, president Donald Trump has said.

    In a Twitter post he again complained about a strong dollar, which “is sadly hurting other parts of the world”.

    The remarks came hours after the president said the US economy is not falling into a recession.

    The economy is doing “tremendously well”, he said.

    I don’t know if that qualifies as compensation in reality, but it does in Donald Trump’s mind.

    When—not if—the economy slides into recession, expect Trump to accuse Ds of frightening the public into cutting their spending.

    –alopecia

    • Hell, Trump will probably want to cut taxes on the rich, in the “mistaken” belief that cutting taxes on the “job providers” will somehow magically make the economy start humming along in high gear again.

      Nah, who am I fooling; he’ll cut taxes on the rich so they won’t lose anything as the economy crashes.

  • Aynwrong

    I can’t wait to see if any of the Trump voters that our “liberal media” keeps studying like some newly discovered species of lizard on the Galápagos Islands actually comes out and blames “the liberals” for making them vote for Trump.

    Probably while sitting in a diner eating pancakes that taste like Murica.