Update: The Impact of Enacting President Trump’s Tariffs

Within the first few months of 2018, the Trump administration enacted tariffs on imported solar panels, washing machines, steel, and aluminum. The administration is expected to impose a 25 percent levy on approximately $50 billion worth of Chinese imports as soon as tomorrow. The proposed Section 301 tariffs are the result of an investigation conducted by the Office of the U.S. Trade Representative (USTR), which found that China engages in unfair trading practices. We’ve updated our previous analysis to include tariffs on steel and aluminum, as well as the tariffs on approximately $50 billion worth of Chinese products. Our previous analysis modeled tariffs on imports of $150 billion. This analysis models the enacted and soon-to-be-enacted tariffs on about $95 billion worth of imports. We find that the resulting $21.5 billion in tariffs would lower GDP and wages by 0.06 percent, lower employment by the equivalent of 45,293 fewer full-time jobs in the long run, and make the…

Read more detail on Recent Tax Law posts –

This entry was posted in Tax Law and tagged , , , , , . Bookmark the permalink.

Leave a Reply