Read the following passage and answer the question that follows:
What have been the effects of the already imposed new trade barriers and what would be the impact of an accelerated trade war on labour markets? The first escalation into a trade war would be a continued spiral of retaliatory measures imposed on trading partners with the purpose of harming the trading partners’ possibilities to export into the home market. The most important channel of protectionist trade measures would run through price effects, impacting households through the real wage channel. Indeed, focussing on the recent increases in tariffs, Amiti et al. find that the full incidence for the US economy falls on consumers and leads to a reduction of real income in the amount of USD 1.4 billion per month (efficiency loss) plus USD 3 billion per month in added tax costs that become revenue for the government.
Q. With reference to the above passage, which of the following statement(s) is/are correct?