Trump’s Trade war cost US economy $7.8 billion in 2018

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Trump’s Trade war cost US economy $7.8 billion in 2018

On Friday, the 15th of March 2019, a study conducted by a team of economist from leading American Universities Published this week had revealed that the US President Donald Trump’s rattling battle with China had cost his economy over $7.8 billion last year.

According to the authors of the study, after analyzing the short-run impact of Trump’s action, they had found that the scale of import from had dwindled by 31.5 percent, meanwhile the US exports had also fallen sharply by 11 percent, mostly due to a trade war with its largest importer, China, world’s second-largest economy.

Apart from that, the independent study had also displayed that the US consumers alongside producers had lost over $68.8 billion last year due to higher of imports, as an aftermath of a tit-for-tat tariff battle with China.

The Study was conducted by a team of economists at the University of California at Los Angeles and Barkley, Columbia University, alongside Yale University, and the results were published by the National Bureau of Research.

According to the authors, since the US tariff-heavy sectors were largely located in the “politically competitive” countries, the retaliatory tariffs inclined on the US goods had grounded the benefits of an enhanced tariff.

In a post-publication press conference, the researchers said, “We find that tradeable-sector workers in heavily Republican counties were the most negatively affected by the trade war”.