Thursday, June 7, 2018

Regarding the G7 meeting

Apparently, Fox News didn't run this story:
A White House economic analysis of President Trump’s trade agenda has concluded that Mr. Trump’s tariffs will hurt economic growth in the United States, according to several people familiar with the research.

The findings from the White House Council of Economic Advisers have been circulated only internally and not publicly released, as is often the case with the council’s work, making the exact economic projections unknown. But the determination comes as top White House officials continue to insist publicly that Mr. Trump’s trade approach will be “massively good for the U.S. economy.”

The chairman of the Council of Economic Advisers, Kevin Hassett, an economist who came to the administration from the American Enterprise Institute, a conservative think tank, dodged questions at a White House briefing on Tuesday about whether tariffs would hurt an economy that has accelerated during Mr. Trump’s tenure.

Asked whether the administration’s economists had modeled the impact that a trade war with China would have on the United States economy, Mr. Hassett said Mr. Trump was a great negotiator who would persuade other countries to open their markets to American products.

  NYT
Yeah, just ask Canada, Mexico and the EU.
Wall Street research firms have warned that those tariffs, and the retaliatory tariffs that trading partners have threatened in response, will slow growth in the United States.

[...]

Republican lawmakers and many economists have been warning that the administration’s trade approach will undercut economic growth and partially offset any boost from the $1.5 trillion tax cut that Congress passed and Mr. Trump signed last year.
But since the tax cuts benefited the wealthy, and the negative impact of the tariffs will be borne by the consumer, hey! GOP win-win! November should be fun for them.
Asked about the Council of Economic Advisers analysis, a White House spokeswoman, Lindsay Walters, said in an email on Wednesday that “we don’t comment on internal, deliberative documents.”

In her email, Ms. Walters pointed to a report issued on Wednesday by the Organization for Economic Cooperation and Development, which includes an economic model predicting positive outcomes if nations around the world reduce tariff levels.
Has Ms. Walters been reading the news lately?
Such reductions, Ms. Walters said, are “what the president’s trade reform agenda is focused on: getting the rest of the world to lower their tariffs and get American exports on a level playing field.”
So far, he's doing a bang-up job of that.

...but hey, do what you want...you will anyway.

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