Study: Trump’s trade agenda could cost $250B

Getty Images

Donald Trump’s plan to restrict trade with China and Mexico could hit American consumers in the pocketbook, according to a new study.

The conservative American Action Forum study released Tuesday found that consumers could see prices raised by as much as $250 billion each year under Trump’s “protectionist” trade policy.

{mosads}The Republican presidential front-runner has suggested taxing Chinese imports at 45 percent and Mexican automobile imports at 35 percent in an effort to stimulate domestic production and jobs.

But American consumers would pay the price, the analysis suggests.

U.S. importers would be forced to buy from domestic producers, which would raise prices in stores.

“A protectionist trade agenda would have dramatic impacts on American consumers,” the American Action Forum, which represents the business community, said in the report. “American importers would see their costs increase, which would most likely translate into price increases [in stores].”

Some states would be hit harder than others, according to the study. 

Tennessee consumers, for example, could expect to pay an additional $2,000 each year because of the policies. But consumers in Washington, D.C., would only pay an additional $18.37 over the course of a year.

“Currently, the U.S. does not impose any tariffs on Mexican imports, according to the terms of the North American Free Trade Agreement (NAFTA),” the study explained.

“For Trump’s auto tariffs to come into force, the U.S. would either have to renegotiate NAFTA or break it altogether,” it added.

Tags Donald Trump North American Free Trade Agreement Tariff Trade policy

The Hill has removed its comment section, as there are many other forums for readers to participate in the conversation. We invite you to join the discussion on Facebook and Twitter.

See all Hill.TV See all Video

Most Popular

Load more


See all Video