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Trump’s China tariffs won’t even pay for the bailout to farmers hurt by his trade war

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The revenues raised by President Trump’s tariffs on China are not even enough to cover the cost of bailing out farmers hit hardest by his trade war.

“We’ve taken in tens of billions of dollars in tariffs from China,” Trump told reporters Monday. He previously vowed that he would raise so much money from the tariffs that it would eliminate the entire national debt. But the New York Times reports that Customs and Border Protection data shows that the tariffs have raised about $20.8 billion in revenue. That is far less than the $28 billion in bailout funds that Trump vowed to give farmers after China imposed steep retaliatory tariffs targeting the agriculture industry. So far the administration has not offered any bailouts to other industries that have suffered sharp revenue losses in the ongoing trade war.

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It’s also false to claim that revenue from the tariffs comes “from China,” since it is paid by American consumers. According to a study by the Federal Reserve Bank of New York, Columbia and Princeton Universities, Trump’s tariffs “were almost completely passed through into U.S. domestic prices, so that the entire incidence of the tariffs fell on domestic consumers” with “no impact” on foreign exporters.

While American industries have seen falling profits and consumers have been forced to pay higher prices for countless products, the tariffs have certainly hit China as well, causing growth to fall to its lowest level in nearly three decades. Trump bragged about companies leaving China because of his tariffs on Monday.

“The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries,” Trump tweeted. “Thousands of companies are leaving.”

This is true, but despite Trump’s claims that the tariffs would cause companies to move manufacturing to the U.S., there is little evidence of that. Instead, The Wall Street Journal reports, U.S. manufacturers are simply moving their production to nearby Asian countries that haven’t been hit with Trump’s tariffs.

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Apple is considering moving some of its assembly plants out of China, according to the report, and the makers of products like GoPro cameras, Crocs shoes, Roomba vacuum cleaners, Yeti beer coolers and Lovesac furniture have already done so. Instead of moving to the U.S., however, the companies moved their production to Vietnam, as well as India, Taiwan and Malaysia.

Imports from Vietnam are up 36 percent this year while imports from China are down 12 percent, according to the Journal, but there’s been no positive movement in the U.S. as manufacturing has fallen to the lowest level of Trump’s presidency.

As a result of companies moving production out of China, the tariff revenues Trump bragged about have also fallen. Trump claimed as a candidate that he would eliminate not just the federal deficit but the entire $22 trillion national debt “over a period of eight years” by imposing tariffs and renegotiating trade deals. Amid stalled trade talks with China, the White House released a report this week projecting that the deficit will hit $1 trillion this fiscal year. That’s the largest deficit since the Great Recession and the second-highest in U.S. history.

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Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



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5.0 earthquake strikes Ridgecrest, California — two months after 7.1

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Two months after the 7.1 earthquakes that hit outside of Los Angeles, another more modest quake was detected, ABC-7 reported.

While the location of the quake was about 20 miles north of Ridgecrest, California, at the Naval Air Warfare Center China Lake. People as far away as Clark County, Nevada also felt the rumble Thursday afternoon.

https://twitter.com/ClarkCountyNV/status/1164643506494689280

It left several people asking if it was considered a foreshock or a really late aftershock from two months ago.

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New poll shows Republicans may get wiped out — in Mitch McConnell’s home state of Kentucky

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This year, Republicans may be heading for a rough election in an unlikely state: Kentucky.

New internal Democratic polls reveal that the GOP is struggling in three critical Kentucky races taking place in November. In the gubernatorial race, incumbent GOP Gov. Matt Bevin is trailing Democratic Attorney General Steve Beshear 48 to 39.

Further down the ballot, the GOP is also vulnerable. In the attorney general race to replace Beshear, former Democratic state House Speaker Greg Stumbo is ahead 46 to 39 against Republican Daniel Cameron, the former legal counsel to Senate Majority Leader Mitch McConnell. And in the secretary of state race, where incumbent Democrat Alison Lundergan Grimes is retiring, Democratic former Second Lady of Kentucky and Miss America 2000 pageant winner Heather French Henry leads GOP former Justice Department lawyer Michael Adams 52 to 37.

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El Paso hospital forced to call out Trump’s lie that surgeons left the operating room to see him

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President Donald Trump bragged that he got an overwhelming welcome from Ohio and Texas when he went to visit survivors of the mass shootings before his latest vacation. Now, however, El Paso's University Medical Center is being forced to dispute the president's account of events.

"Not only did they meet with me, they were pouring out of the room. The doctors were coming out of the operating rooms. There were hundreds and hundreds of people all over the floor. You couldn’t even walk on it. So, you know, there’s a lot to happen," Trump told reporters on the White House lawn Wednesday.

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