This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program gives an update on the cost of tariffs. Mike, the U.S. and China recently escalated their trade dispute. Both countries expanded the number of products subject to higher tariffs. Tariffs make international trade more expensive and initially are expected to slow economic growth. What are the estimates of the costs to the economy of these now broader range of tariffs?
- New tariffs include many consumer goods, so will be more noticeable
- One economic think tank estimated the aggregate impact to be a drop in economic growth of 0.1%, and a loss of 94,000 jobs nationwide
- But these costs need to be put in perspective
- Economy is now growing between 4 and 4.5%
- Also, adding between 150,000 and 200,000 per month
- So impacts are relatively small in the big picture
- But, impacts can be greater for particular sectors, especially those relying on international trade
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.