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Tori Whiting is the Jay Van Andel trade economist in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.
Michael Bugay is a member of the Young Leaders Program at The Heritage Foundation.
Days - Reports - Term - Impacts - Tariffs
In recent days, reports have surfaced highlighting the potential long- term impacts of tariffs imposed by the Trump administration over the last year. Economic growth could drag and close to a million jobs hang in the balance if the trade disputes, particularly with China, persist.
The Congressional Budget Office, in its annual budget and economic outlook, found that the tariffs “will reduce the level of U.S. real GDP [gross domestic product] by about 0.1 percent by 2022.”
Costs - Congressional - Budget - Office - Projects
However, the costs do not end there. The Congressional Budget Office projects that by 2022 American businesses will export 0.5 percent fewer goods and services, and investment by domestic businesses will be reduced by 0.3 percent.
These percent changes may not seem significant, but even 0.1 percent of a multi-trillion dollar economy is a lot of lost value.
US - China - Negotiations - Tariff - Escalation
The U.S. and China are currently in negotiations, which have put any further tariff escalation on hold. However, the tariffs imposed on $200 billion worth of imports on China are set to increase from 10 percent to 25 percent on March 2.
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