How Much Will Trumps Tariffs Cost You? $460.

 It is well known trade raises the standard of living of both trading countries. What often is not quantified is the precise amount. Two economists from the London School of Economics have done this for consumers. For the average consumer it is $460. This is the amount the Trump trade war is costing consumers each year.

For farmers and merchants who depend on farmers it will be much higher. They buy products from China but also sell grain to China. With grain prices substantially lower the cost to the average farmer will be thousands of dollars.

Trade between two countries has the identical effect on our standard of living as does trade between two states. The U.S. prohibits restrictions on trade between states because it is recognized some states are better suited to produce one product while a different state is better for some other product. By specializing and trading the country is better off. Trading between countries makes the world better off.

While states and countries are better off in total by trading, some individuals and individual industries are not. Textile factories were once located in Northeastern U. S. Trade cause the industry to leave and move to southern states. Later it left the U.S. for other countries. All that while textiles became cheaper to consumers.

Of all the things the President has done that seem to me were mistakes, his biggest mistake was holding back international trade. Besides costing us on average $460 it has been harmful across the Middle West and in some other states.

While politics is harm to predict, I would not be surprised to see several states with large rural populations leave Trump behind in 2020.