How Donald Trump's Trade Plan Could Punish The Poor
Trump's protectionist ideas on trade could cost the U.S. billions, according to one review of his policies.By Matt Picht | May 13, 2016
A new paper puts Donald Trump's international trade positions through the wringer and illustrates how Trump's proposed policies could affect American households.
The National Foundation for American Policy, a self-described nonpartisan organization headed by former Cato Institute director Stuart Anderson, published a study examining the effects of high tariffs on the American economy. The paper concludes Trump's policies will cost the U.S. economy billions of dollars a year for very little return.
Trump has proposed tariff rates of 35 and 45 percent on Mexico and China, respectively, and threatened similar tariff hikes on Japan. According to the NFAP, that would pull $850 billion out of the U.S. economy over the next five years, effectively slapping all U.S. households with an extra 4 percent tax.