Article snippet: MORE’s escalating trade war with China is threatening to wash away the positive economic effects from his signature tax cuts, which could endanger his reelection prospects. Trump has regularly pointed to the booming economy as a central reason he believes he will be reelected and credits the tax cuts with boosting output and bringing down unemployment. But economists say that his latest tariffs are all but canceling out the effects of the tax cuts for all but the wealthiest American families. An additional round of tariffs Trump has threatened in hopes of securing a trade deal with China could tip the scales altogether. “It’s a very risky strategy,” says Nicole Kaeding, vice president of Federal Projects at the Tax Foundation, a right-leaning think tank. “The tax cuts and jobs act is pro-growth. It should increase the size of the U.S. economy in the long run and is expected to create jobs. The tariffs, however, move in the opposite direction,” she continued. In mid-May, Trump increased tariffs on $200 billion in Chinese imports from 10 percent to 25 percent. A study on the New York Federal Reserve’s blog suggested those tariffs alone had the potential to wipe away the benefits of the tax-cut law for most families. The study by three economists found the tariffs would lead to higher prices that could cost U.S. households an average of $831 a year. The non-partisan Tax Policy Center found that the Trump tax law would save families earning between $50,000 and $75,0... Link to the full article to read more