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Tariff Tracker: Tracking the Economic Impact of Tariffs

Tariff Tracker: Tracking the Economic Impact of Tariffs
The Trump administration imposed nearly $80 billion worth of new taxes on Americans by levying tariffs on thousands of products in 2018 and 2019, amounting to one of the largest tax increases in decades. The Biden administration has kept most of the Trump administration tariffs in place

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The Trump administration imposed nearly $80 billion worth of new taxes on Americans by levying tariffs on thousands of products valued at approximately $380 billion in 2018 and 2019, amounting to one of the largest tax increases in decades. The Biden administration has kept most of the Trump administration tariffs in place and in May 2024, announced tariff hikes on an additional $18 billion of Chinese goods, including semiconductors and electric vehicles, for an additional tax increase of $3.6 billion. The trade war policies currently in place add up to $79 billion in tariffs based on trade levels at the time of tariff implementation and excluding behavioral and dynamic effects. The tariffs have raised prices and reduced output and employment, producing a net negative impact on the US economy. The Trump-Biden tariffs will reduce long-run GDP by 0.2 percent, the capital stock by 0.1 percent, and employment by 142,000 full-time equivalent jobs. The trade war tariffs have generated more than $233 billion of higher taxes collected for the US government from US consumers. The tariffs have raised prices and reduced available quantities of goods and services for US businesses and consumers, resulting in lower income, reduced employment, and lower economic output. Economists generally agree free trade increases the level of economic output and income, while conversely, trade barriers reduce economic output and income. Tariffs raise prices and reduce available quantities of goods and services for US businesses and consumers, which results in lower income, reduced employment, and lower economic output.

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