Economist Mike Walden: Costs of the Trade War

This is Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at costs of the trade war.  Mike, many economists say we are in a trade war with China, in which each country imposes tariffs on imports from the other country.  Do we have any idea how much this monetary clash will cost the average person?

  1. Currently we are in stage 3 of this war
  2. First was tariffs on washing machines and solar panels
  3. Then came tariffs on steel and aluminum
  4. Then tariffs on $34 billion of a variety of products
  5. And possibly yet to come, tariffs on another $200 billion of Chinese imports
  6. Estimated cost per household of first three stages – from economists at Princeton and London School of Economics – $60 average per year
  7. But ranges from $24 for those making under $15,000 to $141 for earners over $160,000
  8. If stage four is added, average goes to $127

And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.