New data released by Trade Partnership, an economic consulting firm, tariff revenues reached a record of $7 billion in September, as new tariffs were introduced to apparel, electronics and other consumer good from China. This has been putting immense pressure on American businesses that import Chinese products - and their customers. While tariff collections have increased, so have trade-war related
expenses. To help mitigate the losses to U.S. agricultural exporters,
who have suffered from international tariff retaliation, the Agriculture
Department has authorized $28 billion in payouts to farmers.
What do you think this tariff revenue will be used for? How big of an economic impact will removing tariffs have?
Well the initial idea of these tariffs were used in retaliation against China for their seemingly unfair trade practices over the years. Hopefully the revenue from these tariffs are used to support domestic companies and protect them from international competition.
ReplyDeleteRemoving tariffs will be incredibly beneficial for the growth of each economy. If the tariff revenue is used to increase overall capital, it would help the economy recover and then hopefully be at new higher base standard of living.
ReplyDeleteConsidering that this trade war has really taken a toll on small local businesses who are unable to reduce their costs or shift production to another country, hopefully a significant portion of this tax revenue can be used to help them recover and decrease costs in a way that they are still able to compete in the market.
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