President Trump famously (and falsely) said that “trade wars are good and easy to win.” But we now have confirmation that, just as economic theory predicted, American taxpayers are the biggest losers from the former president’s tariffs. (Which have largely been continued by President Biden so far.)

As reported by Reason’s Eric Boehm, a new analysis from Moody’s Analytics finds that only about 8 percent of the tariffs’ costs have fallen on China. In contrast, US consumers have suffered a whopping 92 percent of the costs. 

This finding is by no means an outlier. Similar research found that the economic costs of Trump’s trade barriers “have been passed on entirely to U.S. importers and consumers.” 

And the outlook will only get worse if the tariffs are not rolled back soon. “If the tariffs remain in place, pressure on US retailers will likely rise, leading to a greater pass-through to consumer prices,” Moody’s warns.

“More than three years after Trump launched his trade war and four months after President Joe Biden inherited it, the consequences of the tariffs should no longer be subject to debate,” Boehm writes. “The evidence is overwhelming and one-sided: American consumers are being hammered.”

“With consumer prices already rising due to a combination of inflation and a possibly overheating economy as the COVID-19 pandemic fades, Biden could easily offer a bit of relief by cutting the tariffs his predecessor imposed,” he concludes. “Continuing to fight a losing trade war is both a choice and a mistake.”

Indeed it is.

H/T: Read Boehm’s full reporting here.

Like this story? Click here to sign up for the FEE Daily and get free-market news and analysis like this from Policy Correspondent Brad Polumbo in your inbox every weekday. 

Brad Polumbo
Brad Polumbo

Brad Polumbo (@Brad_Polumbo) is a libertarian-conservative journalist and Policy Correspondent at the Foundation for Economic Education.

This article was originally published on FEE.org. Read the original article.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s