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US consumers pay for the America First

You can interpret the Numbers one way or the other, depending on whether one is fond of this odd President now or not. Probably my end will refer to the number

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US consumers pay for the America First

You can interpret the Numbers one way or the other, depending on whether one is fond of this odd President now or not. Probably my end will refer to the number of jobs, the Donald Trump – by, he imposed tariffs on foreign-made washing machines. Critics are likely to leave more on the costs for the American consumer, each of these new Jobs have to subsidise with a nearly seven-figure sum.

according to The latest Figures from the large electrical appliances industry, on show for the first time, in a specific example, what is the impact of trump's tariff policy on employment and the clientele in their own country – wanted as unwanted.

Economic nonsense, well received by customers

Since the end of January 2018 washing be assigned to machines in the importation into the United States in General, with a special levy of 20 per cent. As soon as the number exceeds the mark of 1.2 million imported equipment, increasing the rate to 50 percent, which happened in the autumn of 2018. With the decision, according to Trump, a response to the "serious damage", the cheap foreign supplier of the US industry would have added in the past few years – wants to achieve, the government in Washington, that manufacturers such as the Korean conglomerates Samsung and LG build their washing machines for the American market in the future in the United States rather than in the far East.

The allegation that his country would be treated in the world trade is unfair, has always been one of the cornerstones of Trump's economic policy. As evidence serve the President States, such as Korea and Germany, which sell a lot more Goods in the US than they import. Economists say this bill is nonsense, for many voters, even in the case of supporters of the opposition Democrats, the commitment to the domestic economy, however, is very good. Trump has therefore occupied a large number of imports, especially from China but also from Europe and other regions of the world, with punitive tariffs.

have found out How Economists from the University of Chicago, and the US Central Bank, the Fed, now, the statement of the President in the case of washing machines, at least in part, to: Samsung and LG shifted actually a part of the production in the United States and created in South Carolina and Tennessee a total of 1600 new Jobs. The US rival Whirlpool, on whose complaints the customs go back, in a plant in Ohio in addition, 200 people. A total of 1800 jobs were created.

In Ohio, the manufacturer of the hot tub to 200 people. Photo: Reuters

contrary to Trump's claims are not, however, the foreign companies, who pay the bill, but first and foremost the US consumer. Washing machines were, in fact, according to the study, between the beginning of February 2018 and at the end of January 2019 at an average of almost twelve per cent more expensive – and by the Bank. This means that not only import devices cost much more today than just a year ago, but also Whirlpool raised prices sharply. This raises the question of whether the US group is actually a protection against cheap competitors or perhaps rather to their own devices more expensive to sell.

According to the investigation, not only the prices of washing machines, but also those for clothes dryers, and although the latter were not evidenced with import duties, however, increased. The authors of the study suspect that the manufacturer took advantage of the favorable opportunity to increase the price of a second device at the same time. Many customers buy washing and drying machine, to a certain extent in the package, by the Splitting of the price increases, the additional could be the cost for the customer, with approximately $ 90 per device, better disguise.

Each of the 1800 new Jobs at a cost of nearly 820'000 dollars – much more so than for many other government job creation programmes.

Overall, US consumers have had to since the introduction of the customs duties of almost $ 1.5 billion more for washing machines and dryers to spend than before. In purely mathematical terms, each of the 1800 new Jobs at a cost of nearly 820'000 dollars – much more so than for many other government job creation programmes. The government took up the duties in the first year, in addition to $ 82 million.

The washing machine case is probably only due to the many other industries and world regions, the Trump has been assigned punitive duties on, or still wants to prove. The example shows, however, that may have import duties in addition to the hoped-for many surprising effects. In addition, the allegation was confirmed that the cost for the most part, remain with the customer hanging.

However, it belongs also to the truth that it is not a Trump was that first came up with the idea to grab the hot tub under the arms: his predecessor, Barack Obama is finished in 2012, the washing machine imports from South Korea and Mexico with a tax to what Samsung and LG might have suggested to relocate production to China. Because of the lower wage costs in the people's Republic, the devices for the US customers were temporarily even cheaper. As it was, however, primarily for jobs, responded to Obama yet, and extended the duties on China. But Samsung and LG were not idle: they moved parts of their production to Thailand and Vietnam. (Editorial Tamedia)

Created: 24.04.2019, 11:19 PM

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