Tags: economists | tariffs | us workers | job losses

Economists: Tariffs Will Result in Overall Job Losses for US Workers

Economists: Tariffs Will Result in Overall Job Losses for US Workers
(Dreamstime)

By    |   Sunday, 03 June 2018 04:57 PM

Economists have warned that the tariffs on steel and aluminum imports from Canada, Mexico and the European Union imposed by President Donald Trump could ultimately result in the loss of hundreds of thousands of American jobs, Business Insider reported on Sunday.

Although the expected hike in steel and aluminum prices would be good for those manufacturers in the U.S., the increase cost for American businesses that use those products would put pressure on profits and likely force them to cut costs by firing workers.

White House National Trade director Peter Navarro argued in a USA Today op-ed that Trump's imposition of tariffs will bring jobs to economically depressed towns and revitalize American manufacturing.

But Business Insider points out that almost no major study has shown that the tariffs would result in a net boost to employment in the United States over all industries. One such study by economists at consulting group The Trade Partnership found that "tariffs and retaliation would increase U.S. steel employment and non-ferrous metals (primarily aluminum) employment by 26,346 jobs, but cost a net of 495,136 jobs throughout the rest of the economy, for a total net loss of nearly 470,000 jobs."

Some impacts of tariffs are already being felt, as prices of futures contracts for U.S. hot-rolled coil steel have increased 10 percent since early March, while aluminum prices have gone up 6.2 percent, according to The Wall Street Journal.

Economists at Goldman Sachs say that imposing the tariffs on Canada, Mexico and the EU could boost prices even more.
 

As international trade tensions escalate with the threat of retaliatory tariffs on U.S. goods by Canada, Mexico and the EU, as well as similar threats by China, the Journal stressed that there is growing risk for the broader U.S. economy.

The Federal Reserve's recent "Beige Book" report was filled with examples of such worries expressed by businesses nationwide.

"The major concern manufacturers expressed was trade policy," according to the report. "Some worried about the effects of tariffs on their costs, while a maker of testing equipment said they might move some production to Europe to avoid Chinese retaliation against the United States."

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Economists have warned that the tariffs on steel and aluminum imports from Canada, Mexico and the European Union imposed by President Donald Trump could ultimately result in the loss of hundreds of thousands of American jobs, Business Insider reported on Sunday.Although the...
economists, tariffs, us workers, job losses
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2018-57-03
Sunday, 03 June 2018 04:57 PM
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