Tax cut gains potentially offset by tariffs

Experts expected the 2017 Tax Cuts and Jobs Act to increase long-run gross domestic product (GDP) by 1.7 percent, create 339,000 jobs and raise wages by 1.5 percent before it sunsets in 2025. However, $88 million in tariffs imposed thus far could reduce this impact by as much as 40 percent, according to the nonprofit Tax Foundation. “Historical evidence shows that tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment and lower economic output.”