Over the past two years, the President has doubled U.S. tariffs. Not surprisingly, trade partners have volleyed back with tariffs of their own, putting a damper on growth by nearly 2 percentage points in the third quarter, a rollback of potential growth that could have been expected at 5.4 percent.
The current tariffs implemented in the past two years have had significant economic impacts in the US. Fox Business predicts that the trade war will continue, and that this will have serious impacts for US consumers.
Says Fox News: Will the trade war deescalate in 2019? Probably not, which is bad news for consumers and the economy. But there is hope for the long term. The next two big events on the trade calendar are a congressional vote on the new NAFTA agreement (U.S.-Mexico-Canada Agreement, otherwise known as the USMCA) and a looming tariff increase against China.
Emma Dahl Comments
Trade, generally speaking, is good for the US. The US has high labor costs, and in addition it’s geographic location limits production of some goods. Trade allows us to focus on producing the things we are best at producing. When we implement tariffs, it increases prices for consumers, and makes some products less profitable to produce because of higher input prices.