What Happened The Last Time Trump Imposed Tariffs | Global News Avenue

If you want to know the impact of the past tariffs on the US economy, then the laundry room may be a good starting point.

Tuesday morning, China Revenge 10 % of tariffs are levied from midnight. From Mexico and Canada It was delayed for a month, and they were still uncertain before the deadline for negotiations on March 4. If tariffs on washing machines in 2018 are any guidance, American consumers and overall economy may encounter difficult journey.

tariff In the early days of the Trump administration, the new president made them the core of their economic agenda. Trump tout tariffs is a way to increase income to replace income tax and promote the establishment of factories in the United States instead of outsourcing production to other countries with cheaper labor.

Critics, including most mainstream economists, said that tariffs increased the price of consumers and damaged the economy, and there was almost no distinguished income.

One way to measure a new round of tariffs was to see what happened during the first presidential period of Trump. At that time, his scope of tariffs was much narrower than the current scope of negotiation.

Washing system makes customers pass on peristals

In 2017, U.S. electrical manufacturers asked the government to issue tariffs on foreign washing machines, hoping to avoid competition between Korean companies such as LG and Samsung. In 2018, the Trump administration levied a special tariff of 20 % -50 % of the residential washing machine, which lasted until February 2023.

The effect is complicated enough that both PRO and anti -propaganda organizations can rotate data to support it.

As targeted critics predicted, the price of washing machines rose. A study by the University of Chicago’s independent researchers showed that by 2019, the prices of washing machines and jacket machines rose 12 %. This is an additional $ 90 of each machine. The tax rate of the dryer has not been taxed, but the price rises, because retailers often sell these machines in sets.

Just like the supporters of the tariff, some companies transfer the production of the padding to the United States to levy tariffs. It is worth noting that LG and Samsung have established factories in the United States. Economists at the University of Chicago estimate that customs customs policy has created about 2,000 jobs in the United States

But these tasks are at a cost. Chicago researchers estimate that each new work created will pay consumers with a cost of $ 820,000.

At least one U.S. company that requires tariffs will eventually regret. A Whirlpool executive told the NBC in 2018 that although the tariff on washing machines helps the bottom line, the separate tariffs on steel and aluminum have increased the cost of manufacturing. Therefore, the overall tariff policy is “anti -wind”.

After the tariffs are levied, the price of washing machines fluctuates every month, but the overall upward trend. According to the data of the Bureau of Labor Statistics, by February 2023, when the protection volume expires, the laundry equipment (the price of the padding and drying machines) rose 34 %, and the same time in 2018 would rise by 34 %. According to the consumer price index, at the same time, the price of all consumer products rose 21 %.

Other tariffs are more expensive

Brean Capital Markets economists John Ryding and Conrad Dequadros regarded the washing system as a warning example of a trade policy in the analysis of Monday. Back to history, other tariffs have proven to have caught disaster to the US economy. Economists pointed out that the tariffs under the leadership of William McKinley in the 1890s were rounds of inflation rates, which was not popular at the time.

For some economists, Trump’s trade threat thought of the 1930s, Holy-Matt tariffThis damaged the economy at the worst moment and made the country more deeply enter the Great Depression.

Ryding and Dequadros wrote: “The tax rate often follows bad economic results.”