WASHINGTON, March 25 (Reuters) – U.S. President Donald Trump’s barrage of tariffs last year had only a minimal impact on U.S. economic output but raised significant federal revenue and contributed to a further U.S.-China trade decoupling, a new Brookings Institution academic paper showed on Wednesday.
The paper analyzing the short-run impact of Trump’s tariffs found that their “net welfare impact” on the U.S. economy was a range of adding 0.1% of GDP to subtracting 0.13% of GDP, depending on assumptions about changing terms of trade, including the extent to which demand shifts to domestically produced goods.
Here are some other key findings of the study conducted by University of California-Los Angeles economist Pablo Fajgelbaum and Yale University economist Amit Khandelwal:
(Reporting by David Lawder; Editing by Lincoln Feast)
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