TRUMP’S TRADE WAR IS GRINDING THE U.S. ECONOMY TO A HALT

The trade war has spread from China to Mexico, to Canada and Europe.

Trump has now enacted nearly $200 billion in tariffs n what amounts to a tax increase on American businesses and consumers.  Any benefit from the small lowering of tax on the middle class has now been negated.

The Federal Reserve Bank if New York estimated that last year’s tariffs cost the average American household $414.

If Trump follows through on his promise to raise tariffs on more Chinese goods, that would increase the total cost increase to Americas to $831.

And that does not even consider Mexico.

American companies who rely on foreign components, have seen their manufacturing cost rise to the point of weakening sales or lowering profits..

If the threatened tariffs on Mexico go into effect, the increased costs for American car makers will leave an opening for Japanese and German car to increase their market share. If GM passes the increased costs along, it would increase the cost of its vehicles by $2400.

Further, companies cannot plan for the future, not knowing if, or how much, tariffs will remain. So investment by many American companies is in limbo

Companies plan investment 5 to 10 years in advance.  Now, they can’t even plan from day to day.

This is Trump at his best: slowing the economy, ending corporate investments in infrastructure and R&D, raising consumer prices.

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