(TargetLiberty.org) – A new analysis by the Tax Foundation, a Washington-based right-leaning public policy think tank, found that former President Donald Trump’s tariffs on foreign goods, which has been kept in place during the Biden administration is causing more harm to the U.S. economy than good.
The tariff is one of the few areas where the current administration has continued the policies of its predecessors. However, the report found that this policy is affecting employment, investment capacity, and growth in the country. It further pointed out that the Trump-Biden tariffs are going to result in a 0.2 percent reduction of the gross domestic product in the long run. The effects over the next two to three decades will also include dragging down capital stock by 0.1 percent and they could cost 142,000 jobs.
The analysis author Erica York noted that $79 billion in higher tariffs also meant that the average US household would be increased by $625 and that the actual revenue collections data have shown that the tariffs have directly resulted in an average increase of $200 to $300 per year to US households during tax collection.
She added that the true cost on households is not truly reflected in these figures as they do not account for the loss of output, loss in consumer choice, and the lower incomes caused by the tariffs.
During the Trump administration, the President completely reformed the trade regime, putting Chinese products under a 25-percent tariff, which is related to steel and aluminum product tariffs. After President Joe Biden won the White House a lot of these challenges continued to be the same while some adjustments were made.
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