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Import tariffs come with a price for American households, congressional budget analysts said Wednesday, as President Donald Trump made his latest assertion the U.S. was “doing great” in its trade deals with China and other nations.
Tariffs on imports will reduce average real household income by $580 by 2020[1], the Congressional Budget Office said in its latest budget and economic outlook. Plus, the levies will cut economic growth by about 0.3%, CBO said.
The CBO estimate is the latest forecast of what tariffs like those imposed by Trump on China will cost consumers. The president has frequently asserted that Americans don’t pay the tariffs.
The CBO’s figures don’t include tariffs that are scheduled to go into effect in September and December. The administration has delayed tariffs on popular electronic goods such as iPhones, Xboxes and laptops that are made in China.
Read: Trump delays tariffs on Chinese-made laptops, iPhones and toys until after Christmas shopping system[2].
Trump said Wednesday that the U.S. and China would “probably” make a trade deal, and said in a tweet, “Doing great with China and other Trade Deals.” The two countries have slapped duties on one another’s goods despite several rounds of trade talks.
Doing great with China and other Trade Deals. The only problem we have is Jay Powell and the Fed. He’s like a golfer who can’t putt, has no touch. Big U.S. growth if he does the right thing, BIG CUT - but don’t count on him! So far he has called it wrong, and only let us down.......
— Donald J. Trump (@realDonaldTrump) August 21, 2019[3]
References
- ^ reduce average real household income by $580 by 2020 (www.cbo.gov)
- ^ Trump delays tariffs on Chinese-made laptops, iPhones and toys until after Christmas shopping system (www.marketwatch.com)
- ^ August 21, 2019 (twitter.com)