We Just Got Proof that Americans, Not China, Are Paying for the Tariffs

Source: Foundation for Economic Education
by Brad Polumbo

“President Trump famously (and falsely) said that ‘trade wars are good and easy to win.’ But we now have confirmation that, just as economic theory predicted, American taxpayers are the biggest losers from the former president’s tariffs. (Which have largely been continued by President Biden so far.) As reported by Reason’s Eric Boehm, a new analysis from Moody’s Analytics finds that only about 8 percent of the tariffs’ costs have fallen on China. In contrast, US consumers have suffered a whopping 92 percent of the costs. This finding is by no means an outlier. Similar research found that the economic costs of Trump’s trade barriers ‘have been passed on entirely to U.S. importers and consumers.’ And the outlook will only get worse if the tariffs are not rolled back soon.” (05/26/21)