Indeed, a recent study by the Federal Reserve found that Trump’s tariffs, which were concentrated on intermediate goods, have reduced, not increased, manufacturing output and employment. Sure enough, while overall economic growth in 2019 was decent (not great), manufacturing is in a recession. (And the uncertainty created by the trade war may explain why business investment is down despite a huge cut in corporate taxes.) Last week the White House basically admitted that tariffs on steel and aluminum have done more harm than good, hurting industries that use these materials. But the administration’s answer isn’t a reconsideration of its policies — it is to impose more tariffs, on a wider range of products.

Source: New York Times January 30, 2020 21:56 UTC