Fed study finds Trump tariffs backfired

[UpInArms]

Source: Marketwatch

President 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.

While the tariffs did reduce competition for some industries in the domestic U.S. market, this was more than offset by the effects of rising input costs and retaliatory tariffs, the study found.

“While the longer-term effects of the tariffs may differ from those that we estimate here, the results indicate that the tariffs, thus far, have not led to increased activity in the U.S. manufacturing sector,” the study said.

Tit-for-tat trade retaliation is an idea best relegated to the past, given the presence of globally interconnected supply chains, the Fed researchers found.

Read more: https://www.marketwatch.com/story/fed-study-finds-trump-tariffs-backfired-2019-12-27?mod=home-page

[RockRaven]

1. "Winning trade wars is easy"

[cstanleytech]

2. They are..............if this was before steam power.

[PJMcK]

26. They are!

Just ask China!

[mwooldri]

3. One tidbit of info I heard...

... was on BBC World Service so must be based in fact somewhere...

The Trump farmer bailout because of the trade war has cost the government more money than the automotive industry bailout of the 2000s.

Can't find sources for the info right now...

[RockRaven]

4. I think I heard that on a podcast recently (don't remember my source either)...

I believe they said it was 3 times as big as the auto industry bailout -- which was a one-time thing, btw, whereas farmers are still screwed next year too.

[Stonepounder]

7. And the auto industry paid back every dime of the bailout.

Think those factory farms are going to pay back one penny?

[2naSalit]

8. I heard it on

NPR in the past three days, but I can't recall which program it was. I think it was the regular news or Marketplace.

[DavidDvorkin]

5. No one could have predicted this

Other than all the people who did.

[ProfessorGAC]

19. Nailed It, DD!

It was a dumb plan from jump, and anybody with a fully functioning brain knew it!

[sprinkleeninow]

6. No foolin'. And the backing out of the Iranian nuclear agreement was

egregiously wrong and now has determined for us to be set on a path of danger.

[Thunderbeast]

9. So Thankful...

that our President has a "really good brain".

Said so hisself!

[AtheistCrusader]

10. Trump may have stepped on his own crotch, but his supporters

Will never hear a word of it.

[Lock him up.]

12. I ventured over at twittler's garbage just to see...

... (although many resisters have it right) the level of ignorance of most of his supporters is mind boggling (it's as high as his is) crazy

I jumped in the shower right after. EW...

[onetexan]

11. Backfired...pshawww. who'da thunk it?

[GoneOffShore]

13. And it's going to be worse if the tariffs on European products go through

https://openingabottle.com/the-wine-tariffs-are-real-speak-up-to-stop-them/?fbclid=IwAR2mi7mrX5qT1BXUcegYH_kplIzfFyYgvPNoAqSyUDrvGVzZkZVxPNQ70Ng

The article detail what could/will happen to American jobs in the import trade, restaurants, American wine and spirit producers, restaurants and retail. It's not pretty.

[sakabatou]

14. You don't say!

[duforsure]

15. While he claims the economy is so great

All because of him, but he doesn't say anything of the trillions more in debt he's put us in, and like his claim he'd have much better health care , again while he is working to destroy it. Millions less have health care since he took office, and he wants all health care destroyed , just like he claimed he wouldn't touch Medicaid, Medicare, and Social Security then took millions out of all three programs and looks to destroy all three if re-elected. Also remember W Bush did the same thing causing the last bad recession , which will happen again from his policies only maybe much worse. W Bush claimed the economy was good too when it wasn't. He knew it was crashing. trump is conning the American people claiming its so great , when in reality its only helped the wealthy people in the country, not the rest of us, and his tariffs are costing us daily with increased prices. trump wants to destroy the ACA with no replacement .

[sinkingfeeling]

16. This should be the screaming headline on every news show and

newspaper in the country. But it won't be. It'll be buried just like the fact that the farm bailout cost twice what it cost to save the auto industry.

[Maeve]

17. Who could have foreseen this?

Only anyone who knows anything about international trade...

[mdbl]

20. and unfortunately, those affected by plant closures in the small towns don't know anything about it

except what Mush Limpbaugh tells them.

[AKing]

18. Trump farm bailout costs more than double the auto bailout that GOP slammed

[link:https://americanindependent.com/donald-trump-farming-bailouts-trade-war-china-barack-obama-auto-industry-cars/|

Trump has spent $28 billion bailing out farmers who were hurt by his trade war — nearly double the Obama-era auto bailout Republicans panned.

Bloomberg News reported that Donald Trump's trade war has now cost American taxpayers at least $28 billion in bailouts to famers — whom Trump has sought to appease after his tariffs on China led to steep losses in the farming industry.

That $28 billion is more than double the $12 billion that the auto industry bailout ultimately cost taxpayers back in 2008 and 2009, when the Great Recession threatened to sink American auto giants General Motors and Chrysler.

Republicans panned that bailout, saying that "free market" principles should have let the American auto makers to go under — taking with them thousands of manufacturing jobs from the kinds of blue-collar workers Trump has courted.

[UpInArms]

21. Thank you for the link

[IronLionZion]

24. Asshole threw poor people off food assistance

and paid farmers not to grow food. It seems like there could have been a cheaper option with better outcomes.

[Yo_Mama_Been_Loggin]

22. But he's a stable genius

Smartest jackass in the whole barn.

[TheFourthMind]

23. A study was needed to verify that a Trump strategy failed? Now that scares me. n/t

[ck4829]

25. K&R