As President Donald Trump’s global trade war continues to rage, he took to Twitter Thursday to insist that his tariffs are making America richer, all while ignoring evidence of the opposite.
Trump has slapped tariffs against Canada, Mexico, China, Turkey, and the European Union throughout 2018, even increasing the tariffs despite retaliatory tariffs being slapped against the United States.
The tariffs have been costly as farmers struggle, businesses ponder closing or moving overseas and workers lose their jobs.
But Trump says the tariffs are enriching the country.
Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go. If companies don’t want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before!
— Donald J. Trump (@realDonaldTrump) November 29, 2018
Except that he’s lying.
Again, farmers have been hit particularly hard as many struggle to make ends meet due to China’s decision to stop buying soybeans and other agricultural products from them because of the tariffs, forcing them to rely on government welfare that is costing $6 billion alone.
Several companies, including Harley Davidson and now General Motors are slashing thousands of jobs and closing manufacturing plants. Even Ford has warned that Trump’s trade war will cause thousands of Americans to lose their jobs.
The trade is particularly hurting Trump’s supporters the most.
Speaking of jobs, Americans are going to need them because Trump’s trade wars are going to cost them big time.
According to CNBC,
Tariffs stemming from President Donald Trump’s trade conflicts could cost Americans $915 each, or $2,400 per household, in the form of higher prices, lower wages and lower investment returns in 2019, according to a new study.
If the tariffs stay in place, the study says, the losses would add up to $17,300 per household by 2030.
And that’s on top of the trillions of dollars in tax cuts Trump gave to the wealthy and corporations last year, which has caused the deficit and debt to skyrocket.
And just in case any conservatives out there want to claim that the study is “fake news,” it should be pointed out that the information is from a study commissioned by Koch Industries, which is owned by the conservative Koch brothers.
The same study also says that millions of jobs will be lost and hundreds of billions of dollars or more will be shed from national GDP if the tariffs remain in place.
While strong economic growth in the U.S. initially will protect workers from job losses, the tariffs will lead to the loss of 2.75 million American jobs, the study predicts. Low-skilled workers in agricultural and manufacturing jobs would be hit the hardest under this scenario. In addition, the study figures an additional 700,000 workers will lose jobs but be able to find work in other industries.
Meanwhile, the study expects the tariffs to sap $365 billion from U.S. GDP next year. Overall, it expects GDP losses to total $2.8 trillion from 2019 to 2030.
Furthermore, the Federal Reserve is warning that the stock market is going to take a massive hit if Trump continues to deny the reality that his tariffs are doing more harm than good.
“An escalation in trade tensions, geopolitical uncertainty, or other adverse shocks could lead to a decline in investor appetite for risks in general,” the Fed wrote. The resulting drop in asset prices might be particularly large, given that valuations appear elevated relative to historical levels.”
So, contrary to Trump’s claims, the trade wars are going to cost Americans more than the tariffs are going to bring in. It spells certain disaster for an economy that former President Barack Obama worked so hard over eight years to rebuild and an economy Republicans had been hoping to tout ahead of 2020.
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