Drag from Trump's trade wars continues to ripple through U.S. economy

[transporter]

oopsie...

Drag from Trump's trade wars continues to ripple through U.S. economy

Research from the U.S. Federal Reserve and other top economists shows that U.S. tariffs on Chinese industrial components and materials, which largely won’t be lifted by the deal, are proving especially damaging to American manufacturing competitiveness and jobs.

Trade wars were a key factor in a broad slowdown of U.S. manufacturing activity last year. U.S. manufacturing output fell in seven of 11 months, with an annualized 3.3% drop in the second quarter, the largest since the second quarter of 2009, when the economy was in recession, according to data compiled by the U.S. central bank.

Aluminum, electric lighting, furniture, semiconductors and steel mills saw the most benefit from tariff protections, while companies that stamp, forge and otherwise process steel and aluminum into components and end-products suffered the most from higher input costs.

U.S. companies have paid $46 billion in tariffs since Trump, who has adopted an “America First” trade policy to revitalize the manufacturing sector, started restructuring relationships with Washington’s major trading partners.

A new Fed paper here released on Dec. 23 analyzes the effect of all new tariffs imposed in 2018 and 2019, including global steel and aluminum duties, on the industries that are most exposed to the tariffs and those that benefit the most from them. It estimates that the tariffs caused more manufacturing job losses than were gained during those years.

“For manufacturing employment, a small boost from the import protection effects of tariffs is more than offset by larger drags from the effects of rising input costs and retaliatory tariffs,” Fed researchers Aaron Flaaen and Justin Pierce wrote.

As 2019 drew to a close, freight rail traffic, a key leading indicator of manufacturing, slowed dramatically. Total car loadings recently hit a record low, and were down by more than 30% from last year’s levels for the weeks beginning Dec. 30 and Jan. 6, according to the American Association of Railroads.

As Trump prepares to sign the long-awaited deal with China, economists are likely to question whether the outcome was worth the cost.

“Was the hammer that was used really worth what we got out of it? Frankly, it looks like pretty small potatoes,” said Loverly, of Syracuse.

Since Trump has no idea what he is doing and has no one around him that is capable of offering sound advice, Trump choose the wrong path (like he has done on so many other topics).

Americans and American companies suffer because of the President's incompetence.

MAGA.

 

[Kyle]

Everybody post your favorite liquor store!

Tranny is looking for ripple!

 

[Gilligan]

That "drag" must explain why the economic numbers and stock exchanges are all setting records.

Erm..wait...wuht?

 

[BOP]

That "drag" must explain why the economic numbers and stock exchanges are all setting records.

Erm..wait...wuht?

For the lefties, up is down, left is right, good is bad, bad is good...basically, if conservatives are for something, they're automatically against it, and vice versa.

That's why we keep hoping Trump will talk about how great air is, and how wonderful breathing is.

 

[CPUSA]

 

[officeguy]

Trade war is over.