America’s Monthly Tariff Bill Spikes to $6 Billion, U.S. Exports Continue to Decline

New data released by Tariffs Hurt the Heartland shows American businesses and consumers paid $6 billion in tariffs in June 2019, one of the highest tariffed months in U.S. history and up 2.5 billion (74 percent) from the same month last year. The data, compiled from the U.S. Census Bureau, is the first look at the impact of the steep escalation of tariffs on $200 billion of Chinese goods from 10 to 25 percent in May. The tariff tracker data comes days after President Trump announced yet another round of tariffs on an additional $300 billion in goods, which are set to take effect September 1. 

 

“Americans are already paying record-high tariffs, and the biggest hit to consumers is still to come on September 1,” Tariffs Hurt the Heartland spokesman Jonathan Gold said. “Taxing hardworking Americans isn’t doing a thing to address China’s trade abuses. Instead, these tariffs are costing American jobs, raising prices, hurting farmers and derailing U.S. economic growth. We continue to urge the administration to change course, and we call on Congress to get off the sidelines and take back its legislative authority on trade.” 

 

In total, American taxpayers have paid over $27 billion in extra import tariffs from the beginning of the trade war in 2018 through June of this year, according to an analysis of U.S. Census Bureau data. The overwhelming majority — nearly 75 percent — of those tariffs are due to the China 301 tariff actions. In fact, June saw a marked increase in tariff totals despite the fact that steel and aluminum tariffs on Canada and Mexico were removed.

However, the worst may be yet to come. U.S. imports in June for the $300 billion tranche (List 4) of goods that President Trump has said will face 10 percent tariffs starting on September 1 were over $23 billion. That is over $6 billion more than the $17 billion in June imports subject to China Section 301, Section 232 steel and aluminum, and Section 201 washing machine and solar panels tariffs combined.

 

In addition to record-setting tariffs on imports, the data released today shows that American exports — including farm products — are being battered by retaliatory tariffs, which expanded in June. Retaliatory tariffs resulted in a 17 percent drop in U.S. exports for products that have been targeted. June was the 11th straight month that American exports targeted for retaliation declined by more than 15 percent. China has threatened further retaliation on the newly announced tariffs. U.S. imports from China subject to 301 tariffs declined by $20.9 billion (-9 percent) in the 12 months through June 2019. U.S. exports to China subject to 301 retaliation declined by $24.5 billion (-29 percent) over the same period.