Tariffs imposed over past year have increased American costs significantly

US Trade War Costs American Consumers $46 Billion in 2018

A study by the Peterson Institute for International Economics has found that US consumers lost an estimated $46 billion in 2018 due to tariffs imposed on imported goods.

The tariffs, which were implemented as part of a trade war with China and other countries, affected a range of products including steel, aluminum, and electronics. The study suggests that these tariffs led to higher prices for many consumer goods.

According to the Peterson Institute, the tariffs resulted in an increase in the cost of imported goods by 5-10%. This increase was passed on to consumers through higher prices.

The study also found that the tariffs had a disproportionate impact on low-income households, who spend a larger proportion of their income on food and other essential goods. The tariffs led to higher prices for these items, resulting in increased costs for these households.

The Peterson Institute estimates that the total cost of the tariffs to US consumers was $46 billion in 2018. This figure includes the direct costs of the tariffs, as well as indirect costs such as lost productivity and economic activity.

The study highlights the potential impact of trade policies on consumer prices and household budgets. It suggests that policymakers should carefully consider the effects of tariffs on consumer welfare when making decisions about trade policy.

Source: Al Jazeera