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U.S. washers, dryers prices climb 12 pct due to global tariffs: study
April 26,2019   By:Xinhua
April 26,2019-- Scholars at the University of Chicago find in a research that as a result of trade wars between the United States and other countries, the prices for washers and dryers have climbed 12 percent.
 
When global tariffs on washing machines were applied in early 2018, prices of washing machines climbed about 12 percent for U.S. consumers. Further, the prices of dryers increased by the same amount, even though dryers were not affected by the tariffs, a news release posted on the university's website on Monday said.
 
Uniquely available statistics on washing machine production and pricing has provided the scholars with a clear answer: When global tariffs were applied to U.S. imports, consumers bore the added cost, with prices jumping more than 10 percent.
 
The United States has placed a series of tariffs and import duties on foreign manufacturers of washing machines in recent years as U.S. companies complained about product dumping and other trade infractions. Each time the United States would take aim at a particular country, and manufacturers would quickly move their production facilities to another country and resume business. The positive consequence of this "country hopping" was that prices actually declined as manufacturers improved their efficiency with each move.
 
But the situation has changed when global tariffs were applied. U.S. manufacturers and workers did see some benefit from these global tariffs as production shifted stateside, but those new jobs came at a steep price. It is estimated that the increases in consumer prices translated into a total consumer cost of 1.5 billion dollars per year, or about 820,000 dollars per new job.
 
The research offers two broad lessons: Tariffs applied to individual countries may be ineffective; and tariffs applied globally tend to result in significant costs to consumers.
 
As for consumers, they not only pay a higher price when tariffs are applied globally, but they also may suffer an efficiency loss if those higher prices prevent them from affording new products that could bring them benefits.
 
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