So this is Trumponomics
Trump's tariffs are backfiring on the U.S., Fed finds
A
new study from the Federal Reserve found that President Trump’s tariffs are backfiring.
According to the Fed study, the tariffs that went into effect in 2018 have led to not only higher producer prices but also a loss of jobs across the U.S. — particularly in manufacturing. A previous analysis also found that
tariffs have cost the U.S. $42 billion so far.
“In terms of manufacturing employment, rising input costs and retaliatory tariffs each contribute to the negative relationship, and the contribution from these channels more than offsets a small positive effect from import protection,” the new Fed study stated. “For producer prices, the relative increases associated with tariffs are due solely to the rising input cost channel. We find little evidence for a relationship between industrial production and any of the three tariff channels considered.”
Trump’s 25% tariffs are backfiring and threatening Gen Z’s trade career aspirations—putting car manufacturing jobs in peril
“This is going to lead to the construction of a lot of plants, in this case auto plants,” Crazy Trump
said upon announcing the tariffs in March. “You’re going to see numbers like you haven’t seen…in terms of employment. You’re going to have a lot of people making a lot of cars.”
But the goal to boost U.S. manufacturing work by alienating trading allies hasn’t panned out yet. In reality, most “American-made” vehicles aren’t completely manufactured in the U.S.; parts of these cars—including Ford,
Toyota, and Honda—are assembled in Mexico or Canada before being finished in the states.
Because of skyrocketing prices from Trump’s 25% tariffs, it’s estimated there will be between 10% and 20% fewer cars produced across North America, according to Cox Automotive. With a decline in demand, less workers would be needed to keep factories running.
nypost.com
