- President Donald Trump said his new tariffs on China and metals would boost the US economy.
- A study by the Tax Foundation found the tariffs will actually hurt the US economy and cost Americans jobs.
- The study also found that low- and middle-income Americans would pay the highest costs from the tariffs.
President Donald Trump has touted his recent decision to impost tariffs on imports of steel, aluminum, and some Chinese goods as a way to support American workers and invigorate the US economy.
But a new study by the conservative-leaning Tax Foundation found that not only would Trump's new tariffs actually damage the US economy, they would also cost tens of thousands of American jobs over time.
The Tax Foundation's Kyle Pomerleau and Erica York on Thursday released their report on the tariffs.
Pomerleau and York pointed to existing economic literature showing how tariffs affect economies. They determined a few ways the tariffs could ultimately depress economic output:
Either way, the analysts said, overall economic activity among consumers and businesses would decline. Lower economic activity in turn means less hiring, since businesses would invest less on things like labor. The decline in labor spending would mean 79,000 fewer jobs are created in the long-run according to the study.
Pomerleau and York also found that most of the economic pain would also be borne more by lower- and middle-income Americans.