Trump's tariffs on US allies will shrink the savings Americans gained from tax cuts

[DonViejo]

* The U.S. says it will impose tariffs on steel and aluminum imports from allies such as Canada, Mexico and the European Union.

* While the White House acknowledges that these measures will lead to higher prices, the administration argues the effect will be tiny.

* But combined with additional tariffs on Chinese imports and retaliatory steps taken by U.S. allies, economists across the political spectrum agree these levies will have a negative impact.

John Harwood | @johnjharwood
Published 2 Hours Ago Updated 27 Mins Ago

President Donald Trump has embarked on an unorthodox follow-up to cutting the taxes American families pay: raising the prices of goods they buy.

Higher prices will result directly from tariffs the White House plans to impose on steel and aluminum imports from allies such as Canada, Mexico and the European Union as well as other countries. The White House acknowledges that effect, while arguing the price increases will be tiny. But combined with additional tariffs against other imports from China and retaliatory steps by our trading partners, the measures Trump announced promise to make an impact. And mainstream economists across the political spectrum agree it will be negative.

"Unambiguously bad," said Douglas Holtz-Eakin, a Republican economist who advised President George W. Bush. "The only question is how big."

"Anything that's manufactured — prices will rise," added Mark Zandi, an independent economist at Moody's Analytics.

Zandi estimated the net effects of trade conflicts Trump has initiated at 0.2 percent in reduced economic growth, 250,000 in lost jobs, and $210 in higher costs for an average family. Such a reduction in growth would wipe out half the projected boost in growth from the tax cuts Trump and the GOP Congress enacted last December.

more
https://www.cnbc.com/2018/06/01/trump-tariffs-will-shrink-savings-americans-gained-from-tax-cuts.html

[dhol82]

1. Those savings are already gone

Gas price increase, health care payments, etc.
My tax bill next year will go up.

[33taw]

2. Totally agree. With rising gas prices any benefit is gone.

The deficit will just keep rising.

[dalton99a]

4. Yep.

[Iliyah]

3. What savings from tax cuts, most USA citizens wonder.

For more than six months or so the cost of living have gone up, including, but not limited to food prices. Gas prices are sky high especially in California due to state increase gas tax for infrastructure, which now incudes additional increase from the oil companies due to I guess messing with Iran.

Propaganda is starting to backfire for at least some of the GOP's base.

[Yo_Mama_Been_Loggin]

5. Dotardnomics