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CBO Underestimated Harm Chinese Tariffs Inflict on Tech Sector, Says CTA

CTA agrees with the Congressional Budget Office “assessment” that tariffs on Chinese imports are taxes on U.S. consumers and businesses, but CBO underestimated damage the higher duties will inflict on the tech sector and U.S. economy, emailed Sage Chandler, vice…

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president-international trade policy. CBO estimated the higher import tariffs will reduce U.S. GDP by roughly 0.1 percent yearly through 2029 (see 1901290001). “The U.S. tech industry alone is paying $1 billion a month on tariffs,” said Chandler Tuesday. “Potential short- and mid-term impact of tariffs could be more destabilizing than indicated by CBO’s analysis. Not only do tariffs increase costs for American business and slow U.S. economic growth, real potential exists -- and warning signs are already evident -- that destabilizing global supply chains may have detrimental effects that spill in to global equity markets.” CBO didn’t comment Wednesday.