While Trump is busy bragging about “winning big” in his trade war with China, it is the American people who are losing big.
According to Moody’s Analytics, the trade war has already cut employment by 300,000 jobs, Yahoo Finance reports. Some of those jobs have been directly eliminated due to the tariffs and others are lost to the lack of growth due to the economic fallout from the trade war.
And things are only going to get worse.
The chief economist for Moody’s, Mark Zandi, predicts another 150,000 jobs will dry up before the end of 2019.
If things continue on as they are, Zandi suggests nearly 1 million total will be lost in 2020. The industries that will be most affected are retail, manufacturing, warehousing, and distribution.
Trump may think he’s really sticking it to the Chinese by tossing tariffs on everything, but it is U.S. consumers that are ultimately paying the price. Average tariffs on imports from China went from 3.1% to 21.2%.
“Trump is in denial, if his public comments are any indication,” explains Yahoo Finance’s Rick Newman. “He says repeatedly, and falsely, that China is paying the tariffs, rather than Americans.”
But it’s the American importers who cover most of that increase, which they pass along to their customers or absorb the costs themselves. Only on the rare occasion are they able to convince their Chinese suppliers to lower prices.
On the flip side, China has either added tariffs to American exports or refused to purchase items from the U.S. (just ask American soybean farmers).
It isn’t likely that things will change anytime soon because the President is insistent that China is paying the tariffs:
“China is eating the Tariffs.” Billions pouring into USA. Targeted Patriot Farmers getting massive Dollars from the incoming Tariffs! Good Jobs Numbers, No Inflation(Fed). China having worst year in decades. Talks happening, good for all!
— Donald J. Trump (@realDonaldTrump) September 6, 2019
J.P Morgan estimates the tariffs will cost the average U.S. household about $1000 extra per year. Combine that with losing thousands of jobs and things don’t look as rosy as Trump likes to paint them.