News Story of the Day: Last year, it was estimated that U.S. households were paying about $1.3 billion extra because of the tariffs on Chinese goods. Now that the U.S.-China trade war has kicked into overdrive, it is now expected that the import levies will cost the American people more than $100 billion a year.
According to a new report from the Federal Reserve Bank of New York (FRBNY), the 25% tax on $200 billion in goods will cost households $106 billion annually.
“These higher tariffs are likely to create large economic distortions and reduce US tariff revenues,” the report, the report said. “Such losses tend to rise more than proportionally as tariffs rise because importers are induced to shift to ever more expensive sources of supply as the tariffs rise.”
Here is a chart from the FRBNY that identifies the numbers:
This does not include the proposed tariff on the remaining $300 billion in Chinese imports.
Chart of the Day: Are chipmakers the latest casualty in the U.S.-China trade war? This CNBC chart suggests that chip stocks are at ground zero of any trade war. Just compare them between 2018 and since May 3.
Illustration of the Day: Who does a better Brian Stelter impression than Mark Dice?
CNN’s little Brian Stelter endorses Michael Avenatti for President pic.twitter.com/KdjfKMbsif
— Mark Dice (@MarkDice) March 27, 2019
Quote of the Day: Apparently, everyone is an expert in economics. This was on display this week when Senator Bernie Sanders (I-VT) says he wants to curb speculation with taxes on Wall Street. But why is speculation so bad? Hint: it isn’t. But legendary economist Murray Rothbard was right when he wrote:
“It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a ‘dismal science.’ But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.”
Tweet of the Day: On foreign policy, there really is no difference between the Republicans and the Democrats. The only difference is who they want to target. For the GOP, it’s the Middle East. For the Democrats, it’s Russia and China. Daniel McAdams points this out:
Scratch hard enough and (almost) every US politician is a neocon… https://t.co/x2U67xYQiY
— Daniel McAdams (@DanielLMcAdams) May 23, 2019
Video of the Day: The Counterfeit News Network is the place for hard-hitting questions. If you want a cable news network to hold a politician’s feet to the fire, then the Compost News Network is who you want to perform that task. Here is an example of just how great their journalists are:
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