The Critical Impacts of Trump’s Tariffs on U.S. Manufacturing Sector

Even the protectionist steel tariffs were ineffective in making foreign steel imports costlier.

SEATTLE (Scrap Monster): The papers published recently show that Americans have paid the full cost of the Chinese tariffs. The higher costs have significantly impacted U.S. export growth. Further, they highlight that the tariffs imposed by the Trump administration have hurt manufacturing jobs in the country.

The first paper published by economists Mary Amiti, Stephen Redding, and David Weinstein states that the tariffs were completely passed on to U.S. firms and consumers, in most sectors. It refutes the claims by the U.S. authorities that China has been bearing the entire burden of tariffs.

Even the protectionist steel tariffs were ineffective in making foreign steel imports costlier. The protectionist measures have not benefitted local steel industry. Leading domestic steel producers, including Nucor and U.S. Steel have announced layoffs and have been reporting decline in output over the past two years.

ALSO READ: U.S., China Agree to Reduce Tariffs Pending Deal

According to the second study by economists Kyle Handley, Fariha Kamal, and Ryan Monarch, the higher costs paid by manufacturing companies in the U.S. for Chinese parts are built into the final product, ultimately making them more expensive in international market. The higher costs from import of products subject to tariff amounted to approximately $900 per worker.

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