Tags: Trump Administration | Donald Trump | Financial Markets | Money | Donald Trump | David Tuerck | Paul Bachman

Report: Trump's Tariff Proposals Costs Households Over $6,000 Per Year

Image: Report: Trump's Tariff Proposals Costs Households Over $6,000 Per Year
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By    |   Thursday, 12 May 2016 03:22 PM

Donald Trump's proposals to increase tariffs on items imported into the U.S. could cost the average household in the U.S. more than $6,000 per year, according to the National Foundation for American Policy research group.

Politico reported that Suffolk University economists David Tuerck and Paul Bachman found that if Trump's 45-percent tariff proposal was applied to imports from all countries, it would cost $2.29 trillion over five years.

Trump said he would favor a 45-percent tariff on Chinese exports to the United States in a New York Times interview. Politico, too, told of his call for a 35-percent tariff on exports from Mexico.

The tariffs would lead to a 30.5 percent increase in the price of "competing domestic producer goods," and because of that, a reduction in wages, the report explained.

The economists made their report based on figures Trump had mentioned during his campaign. They analyzed the effect of a 45 percent tariff on China and Japan imports, and a 35 percent tariff on imports from Mexico.

The results of this analysis showed that, if in Trump's tariffs were in place, exports from the U.S. to those countries would drop 78 percent.

Tuerck and Bachman's report said the tariffs on just those three countries would not protect American workers, because competitors could turn to other suppliers. So the researchers applied Trump's 45-percent proposal to imports from all countries.

"The results would be truly catastrophic for the poor," Tuerck and Bachman reported.

That possibility would end up as the equivalent of an 11-percent flat tax on the income of workers in the U.S.

"That would not seem to 'make America great again,'" the economists said, referencing Trump's campaign slogan.

Chinese Finance Minister Lou Jiwei said in a Wall Street Journal interview that Trump was "irrational" and the U.S. "wouldn't be entitled to world leadership" if it followed through with Trump's 45-percent tariff proposal.

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Donald Trump's proposals to increase tariffs on items imported into the U.S. could cost the average household in the U.S. more than $6,000 per year, according to the National Foundation for American Policy research group.
Donald Trump, David Tuerck, Paul Bachman, Tariffs, Election 2016
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2016-22-12
Thursday, 12 May 2016 03:22 PM
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