U.S. businesses paid $6.2 billion in tariffs in October including $2.8 billion in new tariffs on products that have been targeted by the Trump Administration
Data shows that tariffs have failed to achieve any stated Administration goals: US imports subject to new tariffs declined by just 0.6% in October, while US exports subject to retaliation fell 37%; Businesses are still importing goods while paying higher taxes, exports are falling, trade deficit is growing
Tariffs Hurt the Heartland spokesman Charles Boustany: “The numbers don’t lie. Americans are paying these taxes and they’re paying more than ever before.”
(Washington, D.C.) – New data released today by Tariffs Hurt the Heartland and compiled by The Trade Partnership from monthly U.S. government data shows an unprecedented increase in import tariffs and falling U.S. exports due to new tariffs and international retaliation. The data, which is drawn from U.S. Census statistics on tariffs, includes the first look at the full weight of tariffs that have been imposed on $200 billion in Chinese imports and the impacts of retaliation from that action. The data shows that the $6.2 billion in tariffs paid by U.S.businesses in October 2018 is the highest monthly amount in U.S. history. It is also more than double what businesses paid in tariffs in October last year.
“The numbers don’t lie,” said Tariffs Hurt the Heartland spokesman and former Congressman Charles Boustany. “Americans are paying these taxes and they’re paying more than ever before. These tariffs are not making our country wealthier, they are doing the exact opposite. This data shows that tariffs have been an unmitigated failure in achieving any of the Administration’s goals. All that’s happening is businesses and consumers are paying more, American exports subject to retaliation are rapidly declining, and the deficit the Administration cares so much about is ballooning”
Today’s data shows that the Administration tariff policy has failed to achieve any of its stated goals and has, in fact,helped to grow the trade deficit that the Administration has prioritized addressing. The data shows that US imports subject to new tariffs declined just 0.6% in October, while US exports subject to retaliation fell 37%. In other words, U.S. businesses are still importing goods, they are just being taxed more, while exports are falling on those products that have been targeted by retaliatory tariffs. This trend is even more prominent when it comes to data for China 301 tariffs: US imports subject to Section 301 tariffs increased by 2% in October, while US exports subject to 301 retaliation plummeted 42%.
“We are now seeing the raw data behind the stories of tariff pain that are coming in from every corner of the country,” former Congressman Boustany added. “American businesses, farmers, manufacturers and consumers are suffering under the weight of the current tariffs and are reeling from the continued uncertainty over whether they will be increased even further.”
The Tariff Tracker: The data released today is part of a monthly Tariff Tracker that Tariffs Hurt the Heartland has launched in conjunction with The Trade Partnership, who compiles monthly data released by the U.S. government. The monthly import data is calculated using data from the Census Bureau. The monthly export data is compiled based on Census Bureau and U.S. Department of Agriculture data. As part of the Tariff Tracker project, Tariffs Hurt the Heartland is releasing data on how individual states have been impacted by increased import tariffs and declining exports.
Tariffs Hurt the Heartland is the nationwide, non-partisan campaign opposing tariffs that is supported by over 150 trade associations from every industry. Tariffs Hurt the Heartland has been holding town hall meetings on the tariff impact in communities across the country. The campaign is also airing ads across 11 states in the Midwest that describe the impact of tariff increases on consumers and has launched an interactive map tracking the tariff impact on American employers.
More details on October 2018 Tariff Tracker data:
Overall: Tariffs cost American companies $6.2 billion in October. Tariffs paid increased $3.1 billion (104%) compared to October 2017, despite an increase of just 13% in the value of imports.
Trump Tariffs: Trump administration tariffs cost American companies an extra $2.8 billion in October. Products subject to the Trump administration actions currently in place faced $3.2 billion in tariffs in October, compared to just $407 million in October 2017. The large increase in tariffs came despite a slight decline in the value of imports.
China 301: China Section 301 tariffs cost American companies about $2.2 billion in October. Products subject to the Section 301 remedies faced $2.6 billion in tariffs in October, compared to just $394 million in October 2017. This is the first month reflecting 10% “List 3” tariffs, which could rise to 25% unless the United States and China reach a deal during their 90-day negotiation period.
Steel and Aluminum 232 Tariffs: Section 232 steel tariffs alone have cost American companies $2.3 billion, including $446 million in October. These products were all duty free before the Section 232 tariffs went into effect in March. Section 232 aluminum tariffs alone cost American companies about$124 million in October. Aluminum products subject to the Section 232 remedies faced $134 million in tariffs in October, compared to just $10 million in October 2017. The large increase in tariffs came despite a 4% decrease in the value of imports.