The National Retail Federation and the Consumer Technology Association just issued their findings from a report indicating that four jobs would be lost for every job gained, as a result of the Trump administration’s proposed tariffs on $50 billion of Chinese imports. The tariffs in combination with China’s likely retaliation would reduce U.S. gross domestic product by nearly $3 billion and destroy 134,000 American jobs.
“As administration officials prepare to head to China for trade talks, the livelihoods of American workers hang in the balance,” NRF President and CEO Matthew Shay said.
The study further warns that additional tariffs of $100 billion of Chinese imports would destroy 455,000 jobs, reducing GDP by $49 billion. The agriculture sector is expected to take the hardest hit, though various sectors of the U.S. economy would be impacted. Farmers would experience a direct hit on their net income with a projected decline of 6.7 percent, while 67,000 agriculture jobs would be lost. If the tariffs reach $100 billion farmers face a doubling of costs to them with income dropping by 15 percent, and jobs declining by 181,000.
“Tariffs could wash away the benefits recent tax reform will have on the economy, bringing uncertainty to American businesses and devastation to some workers in key states – they might lose their jobs over a trade tax,” CTA President and CEO Gary Shapiro said.
According to the Report, ten states that would suffer the highest job losses: California, Texas, Florida, Washington, New York, Georgia, Missouri, Pennsylvania, North Carolina and Ohio.
A separate NRF and CTA study examined the consumer impact of proposed tariffs on television sets and other products from China. It revealed that a TV made in China that costs American consumers $250 today would cost $308 after the tariffs are applied, an increase of 23 percent.
