News

The new White House Economic Report of the President was released yesterday, and despite the fact that the report barely touched on the negative impacts of Trump’s trade policies, White House economists confirmed in a briefing that tariffs — and the uncertainty caused by the trade war — depressed the economy.

Bloomberg notes this acknowledgement directly contrasts President Trump’s claims that his trade policies have revitalized and boosted the economy.

And as Reuters points out, global trade battles resulted in significant hits towards business investment. Tomas Philipson, acting chair of the Council of Economic Advisers, said:

“Once we got renegotiation of trade agreements, we saw uncertainty in the market, and investment took a hit.”

White House economists also said that tariffs contributed to the weak manufacturing numbers that the United States has been experiencing. International Business Times reported,

“In the economic report, Philipson and Tyler Goodspeed, a fellow White House economist, wrote that, “uncertainty about trade policy is one often-cited culprit in the manufacturing slowdown.” 

This news comes just a few weeks after reports showed the economy grew only 2.3 percent in 2019 — the weakest annual GDP growth since President Trump took office. The Wall Street Journal named tariffs as the culprit for this slow growth.While the signing of the Phase One Deal was welcomed progress and a step in the right direction, these new reports only further prove that a Phase Two Deal must be negotiated as soon as possible to remove all tariffs. Until then, American businesses, consumers, farmers, and workers will continue to suffer.

Heading into the Nevada caucuses, the negative impact tariffs are having on the state’s businesses, consumers, workers and families remains a critical issue.

Data from Tariffs Hurt the Heartland shows that taxpayers in Nevada have paid $467 million in additional tariffs to date. 

Beyond this, export data from Panjiva – a division of S&P Global Market Intelligence – reveals that Nevada is among the states hurt most by the trade war with China, losing over 20 percent of its total exports since 2017. 

Throughout the 2020 election, it is important for candidates to recognize the crucial role that trade plays in driving Nevada’s economy. Trade supports 343,900 jobs across the state, and 21,600 Nevadans could lose their jobs if trade tensions with China continue. 

As the Las Vegas Review-Journalreported, the negative impact of the trade war with China has been felt across the state’s economy. This has left Nevada business owners with the difficult decision to either absorb the costs of tariffs themselves or raise prices in order to keep their company afloat. 

Some businesses, like Cheri and Mike Tillman’s Pro Cyclery, have had no choice but to raise prices as costs for manufacturers and suppliers rise due to tariffs: 

“As soon as the tariffs were announced, the bike companies let us know they would have to start increasing (prices) so it was pretty immediate … (If) our prices go up, our prices to our customers go up.”

Other companies, like Las Vegas Mannequins, have had to completely overhaul the way they do business. Alison Wainwright, the company’s founder and chief executive, described it like this:  

“It’s been significant enough that I have a half-finished container sitting in China … At first, I thought maybe it’s not that big of a deal, depending on what type of material is on the (tariff) list, but it got to the point now where we’re just trying to sell what we got in the building and order wholesale from other importers.”

The Phase One Trade Deal with China has provided some relief, but more work remains. It is imperative that presidential candidates recognize this and lay out a plan to end the tariffs that have hurt Nevada businesses and consumers. 

If you are interested in speaking with someone about the trade war and how it is hurting Nevadans ahead of the caucuses, please contact press@americansforfreetrade.com.

A new Federal Reserve report reveals how U.S. exporters have been hit by President Trump’s tariffs, and as reported by Bloomberg, exporters from most U.S. states experienced dismal sales to China last year due to tariffs. 

“Particularly hard hit were some of the nation’s largest exporters to the Asian country — Texas, Florida and Alabama — which each saw sales plunge by more than 25%.”

In fact, the total U.S. merchandise exports to China fell 11% last year according to the latest data from the U.S. Commerce Department. And despite the signing of the Phase One Deal, it’s uncertain if U.S. exports to China will improve this year at all.

HillReporter.com echoed this notion as well, citing that the trade crisis will not be ending soon, and that the impact will continue to be felt by Americans nationwide:

“The tariffs are hurting American businesses in major ways as well. Last fall, a report from a nonprofit pro-business group called ‘Tariffs Hurt the Heartland’ found that the trade war, up to October of 2019, had cost U.S. companies more than $34 billion.”

The latest data only further proves that until a Phase Two Deal is negotiated and all tariffs are lifted, American businesses, consumers, farmers, and workers will continue to experience hardship.

WASHINGTON, D.C., (February 14, 2020) – Last month, President Trump signed a Phase One Deal with China in order to reduce tariffs and relieve some of the burden caused by the trade war. As tariff reductions on List 4A and $75 billion worth of U.S. products go into effect today, spokesperson for Americans for Free Trade Jonathan Gold released the following statement.

“It’s encouraging to see some of the Phase One Deal come to fruition. American businesses, farmers, consumers, and workers certainly need these reductions, as they have been paying the price for these tariffs since the trade war began. While this progress is a good first step, the administration must negotiate a Phase Two Deal that completely lifts all tariffs.”

BACKGROUND

Despite tariff reductions, thousands of American companies are paying a higher price for goods integral to their business. (Leticia Miranda, “Amid opaque tariff process, questions arise as to why some companies receive exemptions,” NBC News, 2/13/20)

New data shows the US government has continued to collect tens of billions of dollars in additional tariffs, despite a recent agreement to ease tit-for-tat trade tensions with China. (Gina Heeb, “The government has collected an extra $50 billion in tariffs since the start of the China trade war, according to new data,” Business Insider, 2/10/20)

Small business owner: “Like other companies facing tariffs, we had to increase our prices to cover these extra taxes.” (Jeff Greenstein, “The trade war with China has hurt my small business in Massachusetts,” The Boston Globe, 2/10/20)

After almost winning New Hampshire in 2016, President Trump is trying his hand again.

On the eve of the New Hampshire primary, the president will be hosting a rally in Manchester, where last August he launched his “campaign to win the great state of New Hampshire in 2020.” As revealed in this week’s the State of the Union address, the president’s pitch to Granite State voters will be the record-breaking economy.

New reports show that the economy added an additional 225,000 new jobs last month following the largest gain in five years the previous month. Jobless claims are at near record low, as the stock market continues its longest bull run in history, thanks — in large part — to the president cutting taxes and regulations. By some economic indicators, the president seems poised to win New Hampshire this time around.

Read the full op-ed here.

Jeff Greenstein is a partner at Delta Cycle in Randolph.

Sixteen years ago, I started working at Delta Cycle as an intern. Now I help run the company in Randolph. We design and sell innovative accessories that make it easier for cyclists to store their bikes. Our products can be found in small independent bicycle stores and large national chain stores like Walmart. Our products have always been affordable — until the 2018 trade war with China began.

Since last fall, our company has been impacted by every round of tariffs and their subsequent increases. Delta Cycle designs its products in America, but because of a sophisticated manufacturing process, they are built in China. So even though we are an American business that employs American workers, we’re now paying significantly higher taxes because of this trade war.

Read the full op-ed here.

As we prepare for the New Hampshire primary, it is important to keep in mind the significant impact tariffs have had on the state, in addition to Americans all across the country.

According to data from Tariffs Hurt the Heartland, taxpayers in New Hampshire have paid $111 million in additional tariffs. 

Given that trade supports 170,400 jobs across New Hampshire – and that data shows the trade war with China could cost the state 23,500 jobs – the Democratic candidates must begin to speak about the negative impact of tariffs on the New Hampshire economy and commit to ending the trade war if elected. 

As manufacturing is a traditional pillar of the New Hampshire economy, the state has been hit particularly hard by the trade war’s tariffs on steel and aluminum. As Greg Moore, the New Hampshire State Director for Americans for Prosperity, described in the Concord Monitor: 

“The tariffs on steel and aluminum are squeezing one of the main drivers of our state’s economy: manufacturing. According to the New Hampshire Department of Transportation, our state has seen a surge in steel prices of about 30 percent since the summer of 2018. That increase is rippling through the economy.”

As reported by The Wall Street Journal, the crippling effects of the surge in steel prices  was illustrated when a cost estimates for a Dover flood-control project requiring hundreds of feet of steel-reinforced pipes came in at $4.8 million, about $1.5 million over the city’s estimate of $3.3 million. This kind of cost overrun crowds out already small budgets for critical infrastructure projects.

Additionally, data from the Institute for Supply Management revealed that the manufacturing industry contracted for five consecutive months, in large part due to continued tariffs on the industry.

The harm from tariffs extends well beyond manufacturing. Nearly all of New Hampshire’s key exports are hurt by tariffs. New Hampshire Public Radio explained the extent of the problem in its report on how tariffs affect the state’s exports: 

“So for New Hampshire businesses that export, the retaliatory tariffs from China, Canada and Mexico will make their products less competitive. On the list of goods in the crosshairs are everything from New Hampshire-caught lobsters to chandeliers to various glues.”

If you are interested in speaking with someone about the trade war and how it is hurting New Hampshire residents ahead of the primary, please contact press@americansforfreetrade.com

Ahead of tonight’s State of the Union address, it is important to remember the continued impact tariffs have on American workers, businesses, and consumers.

Tariffs are paid for by Americans – not foreign countries. Tariffs create uncertainty that stifles investment and economic growth. In fact, America’s economic growth in 2019 was the slowest since President Trump took office, in part due to decreased business investment as a result of the trade war,

Recent data from Tariffs Hurt the Heartland shows that Americans have paid $46 billion in additional taxes since the trade war began in February 2018. Additionally, JP Morgan estimates tariffs cost American households up to $1,000 per year.

President Trump will undoubtedly talk about job growth in tonight’s State of the Union address, but data shows the trade war has cost 340,000 American jobs.

Other data suggests that tariffs have damaged many of the industries they were supposed to help, as manufacturing contracted for the fifth straight month in December. Further research conducted by economists at the Federal Reserve shows any claims that short-term damage from the trade war will ultimately boost American businesses are flawed:

“While one may view the negative welfare effects of tariffs found by other researchers to be an acceptable cost for a more robust manufacturing sector, our results suggest that the tariffs have not boosted manufacturing employment or output, even as they increased producer prices.”

In addition to manufacturing, many farmers that were supposed to benefit from the trade war have instead been hurt by tariffs, as farmer bankruptcies continue to rise across the United States.

While the Phase One Deal between the U.S. and China is a step in the right direction, significant work is still needed because none of the retaliatory tariffs have been removed, and the vast majority (94 percent) of tariffs enacted since the trade war began still remain in place. A final deal between the U.S. and China must eliminate all tariffs still in effect.

As the 2020 elections approach, tariffs will be a key issue in the year ahead. 

During the State of the Union, it is imperative that President Trump lay out a plan to end tariffs and finally provide relief to the American consumers, businesses, and farmers.

The economy grew only 2.3 percent in 2019, marking the weakest annual GDP growth since President Trump took office. This muted economic growth is clearly due in part to the impact of tariffs put in place as result of the misguided trade war. 

As Axios Markets pointed out, tariffs “remain largely in place even after the ‘phase one’ deal.”

This is troubling because the Congressional Budget Office’s report is predicting that GDP will be even lower in 2021.

This morning, the Wall Street Journal Editorial Board wrote that trade friction is the culprit as to why GDP growth was so slow.

“President Trump promised to lift the economy above the 2% growth trend of the Obama years, and for a while tax reform and deregulation did the trick. But his trade and tariff forays undermined business investment and global manufacturing, and the economy is now back down to a 2% growth plateau.” 

Experts agree. As reported in Bloomberg, Kevin Cummins, senior U.S. economist at NatWest Markets noted that trade uncertainty continued to weigh on companies.

“The outlook for the business investment side of things is pretty dark,” Cummins said.

To make matters worse, the Congressional Budget Office’s new report shows that tariffs are expected to reduce the average real household income by $1,277 this year. Markets Insider writes,

“While President Donald Trump asserts that other countries pay US tariffs, evidence shows that the majority of costs fall onto domestic businesses and consumers.”

All tariffs must be lifted to promote economic growth and benefit American consumers, businesses, and workers.

Good afternoon – 

As we head into the Iowa Caucus, tariffs are an important issue that deserve significant attention as they directly impact many Iowans and Americans all across the country.

Since the trade war began, according to data from Tariffs Hurt the Heartland, Iowa taxpayers have paid $238 million in additional tariffs. At the same time, Iowa businesses, farmers, manufacturers, and consumers have faced $492 million in retaliatory tariffs, making the state’s exports less competitive.

This issue cannot be ignored, as Iowa ranks number one in producing corn, soybeans, hogs, eggs and ethanol. Yet, the majority of the Democratic candidates running for President – and asking for the votes of Iowans – are ignoring the damage the trade war is causing and refusing to comment on it or commit to ending the trade war if elected. 

It is vital that candidates recognize the importance of this issue, as trade supports 432,600 jobs across Iowa. New data shows the trade war with China could cost the state 23,500 jobs.

And to make matters worse, tariffs are contributing to the rise in farmer bankruptcies. John Newton, the Chief Economist at the Farm Bureau, summarized the farmer’s situation in Forbes as,

“The deteriorating financial conditions for farmers and ranchers are a direct result of several years of low farm income, a low return on farm assets, mounting debt, more natural disasters and the second year of retaliatory tariffs on many U.S. agricultural products.”

Under the Phase One deal, unfortunately, none of the retaliatory tariffs have been removed, only continuing to further harm Iowa farmers. In fact, the vast majority of the tariffs (94 percent) that have been enacted since the trade war began remain in place.

Additionally, due to the uncertainty of the trade war, farmers in Iowa have taken tremendous hits both financially and mentally. As reported in the Iowa State Daily, Associate Professor of Economics at Iowa State Chad Hart said,

“Let’s face it, when you’re worried about making that next rent payment or getting enough money to cover tuition next semester, that’s very stressful.”

Furthermore, the trade war is not just affecting farmers – manufacturers are suffering as well. For five months in a row now, the United States manufacturing industry has contracted and experts agree that the trade war and tariffs are a primary driver for this continued weakening. This is troubling because manufactures account for over 14 percent of the workforce in Iowa.

If you are interested in speaking with someone about the trade war and how it is hurting Iowans ahead of the caucus, please contact press@americansforfreetrade.com.