Trump’s Tariffs Are Raising Prices and Slashing Employment

So how are Donald Trump’s tariffs doing? We already know that they’re costing American consumers a bundle, but what’s their effect on the manufacturing sector? Aaron Flaaen and Justin Pierce took a look at various industries to see how sensitive they were to tariffs, and then used that data to calculate the overall effect of tariffs on US manufacturing. Here’s one piece of their analysis:

Total industrial production has remained fairly steady—though it started to show some weakness in 2019—but employment in affected industries was down substantially and producer prices were up substantially.

In additional to rising input costs, the authors also calculate the effect of import protection and foreign retaliation. The effect of import protection is minimal, but the effect of foreign retaliation is the same as input costs: there’s no big effect on industrial production, but employment is down and producer prices are up.

If this study holds up, it means that Trump’s trade war is (a) costing American families about $1000 per year, (b) cratering employment in the affected sectors, (c) sending producer prices up, and (d) putting hundreds of American farmers face to face with bankruptcy. Nice work, Mr. President.

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Truth #1: The chaos is the point.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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