US companies forked over a record amount in tariffs in October — $6.2 billion! — because of Trump's trade war

pulse

December 8, 2018 4:44 PM

US companies are paying more in tariffs than at any point in history as President Donald Trump's trade war starts to take its toll.

null

The cost of President Donald Trump's trade war is starting to soar.

Trump has cheered billions "pouring into the coffers of the USA," but new data shows companies' costs starting to reach new records:

The total payments in October is the largest monthly tariff collection amount in history, according to the groups.

Tariff rates have been higher in the past, especially when duties were the primary source of government funds before the income tax was created in 1913. But inflation means the nominal value of the tariff collections today is much higher.

Trump's trade war is causing the amount in tariffs collected by the US Treasury to grow. BusinessInsider

Trump's tariffs on steel, aluminum, and nearly $250 billion worth of Chinese goods are clearly having an effect, the data showed:

October also marked the first month that Trump's 10% tariff on roughly $200 billion worth of Chinese goods went into effect, adding onto 25% tariffs on $50 billion worth of Chinese goods that were imposed back in July. The new round caused a marked jump in tariff collections on those goods.

The cost to import goods subject to Trump's tariffs is skyrocketing. BusinessInsider

For his part, Trump has cheered the amount of money coming into the Treasury, tweeting about the collections as part of a trade tirade on Tuesday.

"We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN," he said.

But despite the president's proclamations, most economists warn that these costs are mostly being borne by American companies. In turn, a growing number of firms are reporting a delay in investments, slower pace of hiring, and even cost cuts such as layoffs. If cost increases continue, US companies have warned, consumer prices could also start to rise.

If that were to happen, or if Trump were to go through with threats to place tariffs on imported cars or more Chinese goods, the costs could eventually become a drag on US GDP growth.

pulse

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng