The U.S.-China trade war has roiled markets and hit the US economy by $7.8 billion according to a new study by the National Bureau of Economic Research (NBER), according to a Yahoo Finance report.
“After accounting for higher tariff revenue and gains to domestic producers from higher prices, the aggregate welfare loss was $7.8 billion (0.04% of GDP),” the study found. The NBER paper was co-written by researchers at prestigious U.S. universities UCLA, UC Berkeley, Columbia, and Yale.
Researchers added that “annual consumer and producer losses from higher costs of imports were $68.8 billion (0.37% of GDP).”
Since July last year, President Donald Trump has followed through on threats of extra tariffs on China, kickstarting a trade war with the country. The U.S. has already slapped around $250 billion worth of tariffs on Chinese products and the Trump administration has said it will ramp them up.
This has led to months of negotiations between the two countries. The Trump administration has since postponed a planned increase of China tariffs from 10% to 25%, which was originally scheduled for 1 March. A key meeting between Trump and Chinese president Xi Jinping has reportedly been postponed to at least April this year.
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