The cost of President Donald Trump's trade war is starting to pile up.
Trump has cheered billions "pouring into the coffers of the USA," but new data shows companies' costs starting to reach new records:
The total payments in October is the largest monthly tariff collection amount in history, according to the groups.
Tariff rates have been higher in the past, especially when duties were the primary source of government funds before the income tax was created in 1913. But inflation means the nominal value of the tariff collections today is much higher.
October also marked the first month that Trump's 10% tariff on roughly $200 billion worth of Chinese goods went into effect, adding onto 25% tariffs on $50 billion worth of Chinese goods that were imposed back in July. The new round caused a marked jump in tariff collections on those goods.
For his part, Trump has cheered the amount of money coming into the Treasury, tweeting about the collections as part of a trade tirade on Tuesday.
"We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN," he said.
But despite the president's proclamations, most economists warn that these costs are mostly being borne by American companies. In turn, a growing number of firms are reporting a delay in investments, slower pace of hiring, and even cost cuts like layoffs. If cost increases continue, US companies have warned, consumer prices could also start to rise.
If that were to happen or if Trump were to go through with threats to place tariffs on imported cars or more Chinese goods, the costs could eventually become a drag on US GDP growth.
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