The trade war with China is continuing to devastate the U.S. economy. According to data from Tariffs Hurt the Heartland, the trade war has cost Americans over $94 billion, including nearly $12 billion in the first four months of 2021.
Businesses, consumers, manufacturers, and workers are seeing the impact of the trade war firsthand. In fact, data from Moody’s Investor Services shows that, “American businesses are bearing most of the cost burden from the elevated tariffs imposed at the height of the U.S.-China trade war.”
This is troublesome and will pressure U.S. retailers to pass costs on to consumers. U.S. Treasury Secretary Janet Yellen agrees that the trade war is harmful and that tariffs are problemsome to consumers, telling the New York Times:
“Tariffs are taxes on consumers. In some cases it seems to me what we did hurt American consumers, and the type of deal that the prior administration negotiated really didn’t address in many ways the fundamental problems we have with China.”
It’s not just consumers who are struggling. Lynn Holmes, who is the former Chairman of the North Carolina Employment Security Commission, recently wrote in the Washington Times that President Biden and his administration can help workers who have been struggling by ending the trade war.
“Tariffs are not worker-friendly. They are damaging taxes that are headwinds to realizing our full economic potential as we emerge from the pitfalls of the past year. To truly achieve worker-centric trade policies, the Biden administration needs to end the trade war and provide businesses with the tariff reprieve they’ve been asking for over the past three years.”
Economic experts have echoed this notion. The International Monetary Fund (IMF), has advised President Biden to end the tariffs, writing:
“The [Biden] administration has underscored the need for a ‘worker-centric’ trade agenda that ensures that global trade benefits Americans as workers and wage-earners, not just as consumers. In pursuing these objectives, a removal of the obstacles to free trade would help support U.S. workers and create more and better U.S. jobs…”If you are interested in speaking with someone about the trade war and its negative impact on Americans, please contact press@americansforfreetrade.com.