Donald Trump’s strategy to use import tariffs to protect and boost U.S. manufacturers backfired and led to job losses and higher prices, according to a Federal Reserve study released this week.
“We find that the 2018 tariffs are associated with relative reductions in manufacturing employment and relative increases in producer prices,” concluded Fed economists Aaron Flaaen and Justin Pierce, in an academic paper.
https://www.marketwatch.com/story/fed-study-finds-trump-tariffs-backfired-2019-12-27
As a result, US manufacturing has seen job losses and higher prices for consumers.
“We find the impact from the traditional import protection channel is completely offset in the short-run by reduced competitiveness from retaliation and higher costs in downstream industries,” the authors say.
The findings affirm predictions from trade economists across the political spectrum who have warned that Trump’s tariffs were more likely to damage the US economy than help it — particularly in a globalized economy, where any major departure from free trade norms comes with an array of costs.
https://www.msn.com/en-us/finance/m...-how-trumps-tariffs-have-backfired/ar-BBYrsA7
This is what you get when an idiot is in charge.