The Trump administration argues that its deregulation efforts have boosted the U.S. economy. However, new research shows the tariffs Donald Trump has imposed on steel and various imports from China will soon overwhelm the economic benefits from the administration’s regulatory policies.
“President Donald Trump’s tariff policy has reduced the economic benefits of the Trump administration’s deregulation efforts by 29% and the additional anticipated tariffs on Chinese imports will eliminate all remaining economic gains from the administration’s deregulation actions,” according to a new National Foundation for American Policy (NFAP) analysis of trade and regulatory policies. “These findings are a reminder that tariffs are a form of business regulation that can be at least as economically harmful as other forms of regulation.”
The burden on the economy – known as the “dead loss” – is one of the ways to measure the impact of tariffs. “We focus primarily on the dead loss from tariffs, since that is the most commonly used measure of the economic harm they do,” write David G. Tuerck, a professor of economics at Suffolk University and president of the Beacon Hill Institute, and William Burke, director of research at the Beacon Hill Institute, the authors of the NFAP report. Tuerck and Burke are both research fellows at the National Foundation for American Policy.