into our Republic has been met with a cantillating chorus of critiques claiming they will come at a cruel cost to consumers.
President Donald Trump signs trade sanctions imposing tariffs against China at the White House on March 22, 2018. by economists at Harvard University, the University of Chicago and the Federal Reserve Bank of Boston went a step further, examining data from two large retailers on prices of similar goods, some of which face tariffs and some that do not. The economists found a ‘quite modest’ price difference, suggesting that U.S.
To support the assumption that tariffs get passed through to consumers, the Center for American Progress Action Fund—let’s just call them CAPAF, for short—cites a study that found that “the price incidence of U.S. import tariffs falls largely on the United States.” But that studycited as showing that consumers didn’t pay for Trump’s tariffs. It found that while the tariffs were passed through to importers, they were.
“It is quite odd for anyone to assume that tariffs, which are just taxes, get fully passed on to consumers,” we explained in March of 2019. “Almost no one assumes this about other taxes, whether we’re talking about corporate income taxes, taxes on corporate jets, taxes on dividends, or taxes on financial transactions. To a first approximation, no one on earth believes that the Trump corporate tax cut means that consumers pay lower prices.
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