New data released by Tariffs Hurt the Heartland shows the steep price consumers, businesses and farmers are paying because of the trade war. Overall, Americans have paid an additional $46 billion since the trade war began in February 2018 through November 2019. In November alone, Americans paid a total of $6.2 billion in tariffs, compared to about $2.8 billion in November of 2017, before the start of the trade war. This significant increase in tariffs paid by Americans is primarily driven by tariffs implemented by the Trump administration, which account for over $3.5 billion of the total in November.
“This analysis of data provided by the president’s own Department of Commerce makes it clear that American businesses, farmers and consumers are the ones paying these tariffs – not China,” stated Americans for Free Trade spokesperson Jonathan Gold. “And while the Phase One Deal is a small step forward, significant leaps forward are still needed to put an end to this harmful trade war. There are about $11 billion worth of imports on Lists 1-3 that will continue to be taxed even with the Phase One Deal. In addition, there are about $8 billion worth of imports on List 4A that will face an additional 15 percent tax until at least mid-February – and a 7.5 percent tax after that. We strongly encourage the president to immediately begin negotiations on a Phase Two Deal, and work to quickly come to a final agreement that removes all tariffs.”
The data released today also shows the devastating impact of retaliatory tariffs on American exports as well. Chinese tariffs on American exports exceeded $13 billion since the start of the trade war and reached nearly $1.6 billion in November alone. These tariffs have focused heavily on American farm exports. The November data shows that exports to China that are subject to retaliatory tariffs are $24 billion below their 2017 levels - a 26 percent decrease.
“This can’t be Phase One and done,” stated Farmers for Free Trade Co-Executive Director Brian Kuehl. “With over 80 percent of the tariffs still in place, the cost to American farmers, businesses and consumers will continue to grow. As this data shows, Americans are the ones paying the bill for the trade war. Rather than kicking the can down the road, the Trump Administration and China need to quickly reach a full resolution of remaining issues so that all tariffs can be lifted and so we can stop this drag on our economy.”
With the Iowa Caucus and the kickoff of the 2020 presidential election cycle less than a month away, the data also shows consumers, businesses and farmers in the early states are particularly hard hit. In the four early voting states (Iowa, New Hampshire, Nevada and South Carolina), Americans have paid a combined additional $1.64 billion in taxes because of these tariffs. In South Carolina alone, businesses, farmers and consumers have paid an additional $836 million in taxes. For the month of November, people in these four states have paid an extra $118 million. Iowa in particular, has been very hard hit by the retaliatory tariffs put into place by China in response to the trade war. Iowans have faced up to $482 million in retaliatory tariffs since the start of the trade war, including $83 million in November alone.
As these states face higher and higher tariffs, small businesses in these states suffer. We’ve seen recent reports that New Hampshire businesses, like Surell in Troy, are struggling under the weight of tariffs. Tariffs also cause job losses, with Moody’s Analytics estimating the trade war has reduced U.S. employment by 340,000. This is especially true in South Carolina, with factories there announcing they are having to layoff workers because of tariffs. Farm bankruptcies have risen 24 percent since September of last year, with WHO in Iowa - one of the hardest hit states - reporting that “Iowa farmers are losing patience with trade war.” And following an announcement by a bike manufacturer in South Carolina that they would have to raise prices on consumers, the manufacturing industry, which plays a pivotal role in these early states, contracted for a fifth month in a row in December.
