The Economic Perspective: “Economic Impacts of the Trade War”

I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program looks at the economic impacts of the trade war. Mike, over the last year the U.S. has had trade disputes with many countries, the most important being China.  This dispute – some call it a trade war – has made it harder for US companies to sell products in foreign countries.  It’s also made some foreign imports more expensive for U.S. consumers to buy.  Do we have a tally of how much this has cost our economy?

 

Mike:  Summary Answer

  1. A new study just released tried to estimate these numbers for 2018
  2. The tally is $69 billion
  3. Sounds big, but is less that ½ % of GDP
  4. So is one reason why our economy hasn’t collapsed
  5. Of course, the costs are not evenly distributed
  6. One of the biggest sectors impacted in agriculture, which is very export oriented
  7. Nationally farm output is down 5% nationally in 2018, but is off 15% in NC’
  8. So, for some sectors and some communities, the trade war has been exceedingly expensive
  9. I’m MW

 

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