All tariff pain is local

Another $16 billion of tariffs on imports from China will take effect in a couple weeks — Aug. 23 to be precise. That announcement came from office of the U.S. Trade Representative yesterday. Semiconductors and various plastics are on the list. The reaction from China was swift and predictable in this tit-for-tat thing we’ve got going on. China promptly said I see you and I match you — $16 billion in tariffs on U.S. products. So far, the macro effect of these tariffs on, say, GDP, prices or jobs has been minimal. “De minimis” as White House Chief Economic Advisor Larry Kudlow put in on the show the other week. But the micro view is a bit different.

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