Note: This version is updated with results for additional tax revenue and a retaliation scenario. Key Points CPA modeled former President Trump’s recent proposal regarding a 10% universal tariff. Our simulation finds that the tariff change would increase economic growth and create opportunity for Americans through increasing incomes and job creation. Under the proposal, real…
Tariffs, i.e. import restriction, are a valuable tool for generating growth in the U.S. economy.
The U.S. dollar fell slightly in our currency model, with overvaluation declining six tenths of a percentage point to 14.6% in this month’s CMM.
Key Points Steel imports from Mexico have surged in recent years. Some steel products, such as rebar have increased by several thousand percent over previous import levels. Mexico has violated the 2019 U.S.-Mexico agreement to maintain steel imports at past levels. The agreement was made when Mexico was exempted from the 25% steel tariffs under…
Recently, we’ve seen a barrage of attacks on the pro-manufacturing policies enacted by Congress in the past two years. According to The Economist magazine, the world is supposedly in the grip of a manufacturing delusion. There is no delusion. On the contrary, it is a delusion to believe that a nation in the 21st century…
Last month, the Wall Street Journal published an attack on Joe Biden’s industrial policies arguing that Bidenomics “needs more…economic theory or research.” This theme has been picked up by numerous other media publications. Economist and former Treasury Secretary Larry Summers appeared on a Peterson Institute video to argue that restrictions on free trade, such as…
A looming shortage of critical minerals is a huge challenge facing the U.S. and all industrial nations outside of China. The rare earth family of minerals is one example of the problem. Rare earths are used to manufacture permanent magnets, key components of the motors that power electric vehicles. Rare earths also figure in motors…
Monthly index tracks currency misalignment based on latest market rates Dollar overvaluation rises to 15.2% against global currency basket as dollar inflows continue to push up the greenback. Japanese yen undervaluation against U.S. dollar reaches 50.1%, a new all-time low for the yen in dollar terms. Chinese yuan undervaluation against dollar rises to 28.1% CMM…
U.S. manufacturing employment hit an all-time low as a percent of the total workforce, 8.3%.
Monthly index tracks currency misalignment based on latest market rates Dollar overvaluation rises to 14.8% against global currency basket from 14.3% last month Japanese yen undervaluation against U.S. dollar expands further to 45.7% Chinese yuan undervaluation against dollar rises to 25.0% CMM is a partnership between the Coalition for a Prosperous America (CPA) and the…
