On Monday, The Congressional Budget Office (CBO) released an updated fiscal estimate for the next decade. The report estimates that the last two years of trade policy will increase inflation, cause a drag on personal consumption and private investment, and negatively impact economic growth. The Heritage Foundation’s Tori K. Whiting, Jay Van Andel Trade Economist in the Thomas A. Roe Institute for Economic Policy Studies, released the following response:

 

“Tariffs are taxes and tax increases on the American people should not be used as negotiating tactics in trade disputes with other countries.”

 

“The results of this CBO report, which highlight the damaging impact of tariffs, are no shock. The U.S. has placed new tariffs on roughly 12 percent of its total imports from the world, and that causes prices to rise for American businesses and families.”

 

“The Trump Administration should abandon its tariff tactics and instead focus on its otherwise pro-growth agenda that has boosted the economy. This plan should include removing all new tariffs imposed in 2018 immediately, including tariffs on imports from China.”