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Fed study: Trump tariffs backfired, caused job losses and higher prices

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  • Fed study: Trump tariffs backfired, caused job losses and higher prices



    © Getty Images

    President Trump's tariffs on imports — meant to boost the economy — ultimately led to job losses and higher prices, a new study from the Federal Reserve has found.

    "We find that tariff increases enacted in 2018 are associated with relative reductions in manufacturing employment and relative increases in producer prices," the report by Fed economists Aaron Flaaen and Justin Pierce reads.

    MarketWatch first reported the study, noting that 10 primary industries were hit by retaliatory tariffs and higher prices, including producers of magnetic and optical media, leather goods, aluminum sheet, iron and steel, motor vehicles, household appliances, sawmills, audio and video equipment, pesticide, and computer equipment.

    The Trump administration first implemented steel and aluminum tariffs in March of 2018, with the president declaring at the time that "aggressive foreign trade practices" related to the trade goods amounted to an "assault on our country" and the U.S. steel industry.

    Since then, Trump has announced new rounds of tariffs on billions of Chinese goods in a retaliatory back-and-forth with the country.

    U.S. and Chinese officials say they have neared a preliminary trade deal that would grant China relief from some tariffs in exchange for drastically increasing purchases of American farm exports.

    The escalation of the U.S.-China trade war prompted a tumultuous market at some points throughout the year, amid fears of a possible global recession.

    In September of this year, U.S. consumers and businesses paid a record $7.1 billion in tariffs.


    https://thehill.com/policy/finance/4...9NJ1A.facebook


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    • #3
      Originally posted by TonyR View Post
      Way to "own the libs," Trumpettes!

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      • #4
        No matter how well this bankster managed economy does in the stock market, if only a tiny percentage of the citizenry are seeing improvement (and massive improvement at that) then the economy is a failure. A "good" economy does the best for the most.

        Also, you have to ask, what material wealth and progress are the stock market gains based on? Exposure of the (still unregulated) derivatives casino has passed the $4 trillion mark. Are these material gains, or just numbers in a computer?

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        • #5
          an economy where Taco bell managers make 100 grand. terrible

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          • #6
            Originally posted by ShaneFalco View Post
            an economy where Taco bell managers make 100 grand. terrible
            I can pretty much guarantee you Taco Bell managers aren't making remotely 100 grand. But sorry to shoot down the earnings potential of your dream job!

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            • #7
              Originally posted by ShaneFalco View Post
              an economy where Taco bell managers make 100 grand. terrible
              Wow, you either don't read the fine print or you're just ignorant. Taco Bell isn't paying managers $100K as in that's the annual salary they all make. It's a political stunt really, as well as an attempt to retain workers. They're only paying a small handful of managers that salary for a set period of time. They're not the only FF chain to attempt this. When the average salary for a fastfood worker is $9 hour, and the CEO makes 25 million, there's the real problem. That said, I'm not one to say FF work is meant to be a career, but on the same note, when the CEO is making 25 million annually, seems to me like that just continues the big problem of wage gaps in this country. But, Shane doing what he does. Ignoring the obvious staring him in the face and not seeing the big picture.

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              • #8
                He’s ignorant, make no doubt about it. He’s very very ignorant. Hasn’t posted a single thing worth reading that didn’t come from someone else.

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                • #9
                  China describes new trade deal: “The first phase of the agreement … certainly leaves both sides with regret and unhappiness, which is exactly the response that a fair agreement will elicit. Arguing who lost and who won is superficial.”

                  Trump describes new trade deal: "THE BIGGEST DEAL ANYBODY HAS EVER SEEN!"

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                  • #10
                    Originally posted by Rohirrim View Post
                    China describes new trade deal: “The first phase of the agreement … certainly leaves both sides with regret and unhappiness, which is exactly the response that a fair agreement will elicit. Arguing who lost and who won is superficial.”

                    Trump describes new trade deal: "THE BIGGEST DEAL ANYBODY HAS EVER SEEN!"
                    Well yeah, if I was China I would have a lot of regret and unhappiness if I had to spend an additional 200 billion.

                    Seriously, how is this a bad thing for America? The S&P 500 and NASDAQ closed at a record high yesterday. An additional 200 billion for the next two years.

                    The biggest news is ending the forced technology transfer China imposed on US companies to have access to their market. That is a huge win for American tech firms.

                    The second phase of the trade talks started and the big item on that is cyber intrusion.

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                    • #11
                      Tariffs always do... But the tariff was actually a left/dem policy so as long as Trump is imposing their policy then let the bad articles roll. Had it come from he hands of a dem there would be tons of fluff articles on how he/she was protecting American industry.

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                      • #12
                        Is this real life? 😂

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                        • #13
                          Tariffs are never an economic solution and just make a country that imposes them poorer. But, they can be a political solution. This China deal just got done so the report card on the tariffs effectiveness should be an incomplete for now.

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                          • #14
                            Originally posted by TonyR View Post

                            I can pretty much guarantee you Taco Bell managers aren't making remotely 100 grand. But sorry to shoot down the earnings potential of your dream job!
                            It is actually a pilot program they're testing. Not that that has any business being discussed here.

                            https://www.chicagotribune.com/busin...pwm-story.html

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                            • #15
                              The trade deal is NOT done. This basically says China will buy 200 million in goods a year, but the protections for technology transfer are NOT part of it. Forced tech transfers are, but the Chinese did not guarantee that they won't steal the tech of any company that does business there , only that they won't force the transfer. No guarantees to US companies doing business in China.

                              Basically the deal is another Trump SCAM with only a minor gain for Some. Trumps Tariffs of 370 million are still in place and the suppliers are now going to have to start applying the cost to their products THIS year. ( they have been eating it til now but that won't continue) Price of TVs, electronics and such are going to spike starting soon and the resultant cost of living increase for most Americans who like that stuff ( I phones) is going to be apparent. In addition the farm purchases will not take effect right away so more Family Farmers are going to go broke by the end of the year.

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