SACRAMENTO – Recently enacted and proposed tariffs will have devastating consequences for American families, businesses, and the overall economy, according to a new study by the Pacific Research Institute.
The report, authored by economist Dr. Wayne Winegarden, finds that tariffs will lead to higher consumer prices, increased manufacturing costs, and reduced economic growth, while failing to achieve the intended policy goals. Even as a bargaining tactic in negotiating new trade deals, they can lead to a trade war that is equally counterproductive and harmful.
“Tariffs are nothing more than taxes on American consumers and businesses,” said Dr. Winegarden. “They will raise prices on everyday goods, increase costs for manufacturers, and ultimately weaken the U.S. economy rather than strengthen it.”
The study outlines key economic consequences of increased tariffs, including a sharp rise in the cost of living for American households. By analyzing past tariff implementations, Dr. Winegarden demonstrates how higher import costs lead to price spikes for both imported goods and domestically produced products, as manufacturers pass additional costs onto consumers.
“Instead of creating jobs and boosting domestic production, these tariffs will make American businesses less competitive and consumers worse off,” Dr. Winegarden added. “History has shown that protectionist policies lead to higher costs, reduced investment, and economic stagnation.”
The report also refutes claims that tariffs will generate meaningful revenue for the federal government. By discouraging imports and slowing economic activity, tariffs are likely to underperform as a revenue source while simultaneously increasing costs for businesses and consumers alike. Tariffs will also harm the U.S. capital and currency markets.
