‘Tariff Man’ Trump wrong on import taxes

Staff Writer

WASHINGTON (AP) — President Donald Trump promised on Twitter that tariffs would maximize the country’s economic heft and “MAKE AMERICA RICH AGAIN.”
Almost all economists say the president is wrong. That’s because tariffs are taxes on imports. They can cause higher prices, reduce trade among countries and hurt overall economic growth as a result.
The president’s tweet on Tuesday followed an announcement that the U.S. would not increase a 10 percent tariff on $200 billion of Chinese goods in 2019. The two largest countries are in the middle of negotiating their terms of trade, after Trump said cheap imports from China were impoverishing the United States.
After Trump announced steel and aluminum tariffs earlier this year, the University of Chicago asked leading academic economists in March whether Americans would be better off because of import taxes.
Not a single economist surveyed said the United States would be wealthier. Nobel Prize-winning economist Richard Thaler answered the survey by saying, “In net we want more trade not less. This is unlikely to help and runs the risk of starting a trade war. SAD.”...To read more, please refer to our print or online edition.

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