Study: China tariff would add $156B to US GDP

Container shipIt turns out that economists are starting to get on board with the idea that protectionism can work:

The Coalition for a Prosperous America (CPA) has won the prestigious Edmund A. Mennis Award from the National Association for Business Economics (NABE) for a study showing that a permanent tariff on China would benefit the US economy. The award from the nation’s leading association of business economists confirms a growing acceptance of pro-US trade policies needed to address the nation’s economic challenges.

The study, Decoupling from China – An Economic Analysis of the Impact on the U.S. Economy of a Permanent Tariff on Chinese Imports, co-authored by CPA Chief Economist Jeff Ferry and Senior Economist Steven Byers, modeled the effects of a 25 percent tariff on imports from China. It found that after five years the tariff would add $156 billion to annual GDP and 948,000 jobs to the US economy. […]

Michael Stumo, CEO of the CPA, said, “I am very proud of the cutting edge work of our CPA economics team. Receiving this important national award among a crowded competitive field of economic papers is an honor. We have long been concerned that standard economic models produce incorrect results, leading to trade policy that destroys US jobs. Our team has broken new ground on how decoupling from China will produce economic gains, rather than pain, even as America’s national interest is served.”

“The effects of freer trade on the US economy are complex, and often negative for long-term economic growth and income equality,” said Ferry. “In this study, we attempted to show that activist trade intervention like tariffs, if implemented correctly, can produce positive results for the US economy. We are very grateful to the NABE for recognizing our work.”

2 thoughts on “Study: China tariff would add $156B to US GDP

  1. People keep complaining “China isn’t paying the tariffs, US consumers are.” Well true, but only those consumers still willing to buy the enemy’s products. One way to avoid the tariffs is to buy American products. Additionally, Americans are paying the tariffs to the US government, so the tariffs are raising money for the general operating fund of the US government as opposed to giving more money to China. When you read, $500 billion in tariffs or whatever the number is, that is income that will go to the US government.

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