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Backfire economics: Consumers are and will be paying higher prices due to Trump’s tariffs/taxes on Americans – Publications – AEI

Summary:
AEI Backfire economics: Consumers are and will be paying higher prices due to Trump’s tariffs/taxes on Americans From CNBC: The average American household will be down ,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan. The firm estimates the average annual tariff cost per household will increase from 0 from the first two rounds of tariffs. The new tariffs are scheduled to begin Sept. 1 and in mid-December. “What distinguishes China Phase III tariffs from preceding tariffs is the impact to Consumption and Capital goods whereas previous tariffs focused more on Intermediate goods,” J.P. Morgan head of U.S. equity strategy Dubravko Lakos-Bujas said in a note to clients. “This suggests that the expected consumer impact should be larger in the

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AEI
Backfire economics: Consumers are and will be paying higher prices due to Trump’s tariffs/taxes on Americans

Backfire economics: Consumers are and will be paying higher prices due to Trump’s tariffs/taxes on Americans - Publications – AEI

From CNBC:

The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan. The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. The new tariffs are scheduled to begin Sept. 1 and in mid-December.

“What distinguishes China Phase III tariffs from preceding tariffs is the impact to Consumption and Capital goods whereas previous tariffs focused more on Intermediate goods,” J.P. Morgan head of U.S. equity strategy Dubravko Lakos-Bujas said in a note to clients. “This suggests that the expected consumer impact should be larger in the latest round.”

MP: At Steve Horwitz reminds us, “Instead of ‘trade wars,’ let’s call them what they really are: economic suicide bombings.” With a lot of collateral damage and deadly friendly fire on Americans! Sick of “winning” yet?

Backfire economics: Consumers are and will be paying higher prices due to Trump’s tariffs/taxes on Americans
Mark Perry

Mark Perry
Mark J. Perry is concurrently a scholar at AEI and a professor of economics and finance at the University of Michigan’s Flint campus. He is best known as the creator and editor of the popular economics blog Carpe Diem. At AEI, Perry writes about economic and financial issues for American.com and the AEIdeas blog.

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