President Donald Trump’s latest round of trade tariffs on Chinese imports will result in American consumers paying $1,000 extra a year for the goods they buy, according to a new analysis from J.P. Morgan.
HuffPost notes that Americans are already paying $600 a year with the tariffs in place, and the new 10 percent levy which is scheduled to take place on September 1 will add another $400 to what each family is paying in the form of higher prices:
(J.P Morgan) estimates that the administration’s newest round of tariffs ― 10% on $300 billion of Chinese goods ― will result in a $400 increase in costs per household. Roughly half of the new tariffs are due to take effect on Sept. 1 and the other half are set for Dec. 15. The Chinese tariffs already in place are expected to cost the average household $600 per year.
That extra $1,000 will effectively wipe out any gains consumers got from Trump’s 2017 tax bill.
J.P. Morgan head of U.S. equity strategy Dubravko Lakos-Bujas told clients in a memo sent out Monday:
“What distinguishes China Phase III tariffs from preceding tariffs is the impact to Consumption and Capital goods whereas previous tariffs focused more on Intermediate goods. This suggests that the expected consumer impact should be larger in the latest round.”
The president has repeatedly claimed that the tariffs are paid by China, but actions taken recently by the administration suggest the White House is well aware the U.S. consumers will ultimately pay extra as a result of the levies on Chinese goods:
Initially, the 10% tariffs were supposed to be implemented all at once in September. However, the partial delay has been advertised as a way to help families who will soon be preparing for the holidays.
In an interview with Fox News last week, shortly after the delay was announced, White House trade adviser Peter Navarro called it a “Christmas present to the nation.”
That admission from Navarro came just three months after the International Monetary Fund, the Federal Reserve Bank of Boston, Harvard University, and the University of Chicago released a study stating that the cost of the tariffs is being placed “largely on the U.S.” and “tariff revenue collected has been borne almost entirely by U.S. importers.”
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