In Reply to: Biden didn't add jobs outside of government jobs... posted by wwood2 on September 06, 2025 at 07:30:34
economists and several studies indicate the U.S. trade war's tariffs contributed to job losses by increasing costs for U.S. businesses, which led to layoffs, and by triggering retaliatory tariffs that harmed U.S. exports. For example, the Federal Reserve Board found a 1.4% decline in manufacturing employment due to tariffs, while the Tax Foundation estimated over 166,000 lost jobs and the U.S.-China Business Council estimated up to 250,000 jobs were lost.
How the Trade War Led to Job Losses
Increased Input Costs for Businesses:
Tariffs on imported goods, particularly intermediate goods used in manufacturing, raised production costs for U.S. firms. This led to higher prices for consumers, reduced demand, and ultimately, fewer jobs.
Retaliatory Tariffs:
Other countries responded to U.S. tariffs with their own tariffs on U.S. exports, making American products more expensive abroad and hurting U.S. export-oriented industries and their workers.
Impact on Manufacturing:
The manufacturing sector, a key target of the tariffs, saw a direct decline in employment. For example, the Brookings Institution noted that the number of manufacturing jobs fell even as the tariffs were intended to boost it.
Strain on Small Businesses:
Small businesses, which employ nearly half of all U.S. workers, faced significant pressure from the multiple negative effects of the trade wars, leading to layoffs and furloughs.
Evidence of Job Losses
Federal Reserve Data:
The Federal Reserve Board found that increased input costs from steel and aluminum tariffs were associated with a 0.6% decline in manufacturing jobs, representing around 175,000 jobs that would otherwise have been created.
Tax Foundation Study:
A study by the non-profit Tax Foundation estimated that Trump's tariffs decreased U.S. employment by approximately 166,000 jobs.
U.S.-China Business Council Estimate:
A separate analysis by the U.S.-China Business Council suggested the tariffs led to the loss of up to 250,000 jobs.
NPR Reporting:
Reporting in December 2019 noted that factories in key manufacturing states like Michigan, Wisconsin, and Pennsylvania suffered significant job losses directly attributed to the tariffs.