Job losses incurred as a result of the Trump’s administration trade skirmishes, the largest of which is with China, could outpace employment gains from the GOP-led tax law, according to a new report from the Tax Foundation.
U.S. tariffs and foreign retaliation may cost more than 465,000 jobs over the next 10 years, analyst Erica York and economist Kyle Pomerleau wrote, while the tax law is estimated to create 339,000 job in the same period.
Despite concern from corporate executives and economists, however, President Trump has promised that his policies will benefit American workers in the long run. The White House is now weighing whether to impose an increased 25 percent tariff on $200 billion in Chinese goods in addition to earlier duties on $50 billion of imports.
President Trump is hoping that increasing the pressure on Beijing will force the communist government to restart negotiations on a trade deal to address U.S. grievances over, among other things, Chinese theft of intellectual property.
The administration previously levied across-the-board tariffs on steel and aluminum imports that also hit U.S. trading allies like the European Union, Mexico and Canada. Trump continues to weigh a 25 percent tariff on automotive imports, though that seems to be on hold pending talks with Europe.
Should all the trade actions go into effect, the Tax Foundation estimated the U.S. economy could suffer by as much as $150 billion, undercutting the benefits of the recent tax law.
Several smaller manufacturers have already announced layoffs and production cuts as a result of the administration’s trade agenda, while larger corporations warn that profits will be lower in 2018 due to the tariffs.
