In March, President Donald Trump threatened to slap tariffs on up to $150 billion worth of Chinese goods.
A new study warns that imposing tariffs on an additional $100 billion of Chinese imports would have a negative impact not only across Asia but also on the U.S. economy. This move by the Trump administration would result in destroying 455,000 jobs each year, thereby reducing the GDP by $49 billion. According to the study, if the U.S were to impose 25 percent tariffs on imports from China and the latter retaliates with 25 percent tariffs on imports of selected goods from the U.S, the damage to the U.S. economy and workers will nearly double.
The 10 states that would suffer the highest job losses as a result of these tariffs are California, Texas, Florida, Washington, New York, Georgia, Missouri, Pennsylvania, North Carolina, and Ohio.
Florida To Lose 7,128 Jobs
The study by the National Retail Federation (NRF) and the Consumer Technology Association also claims that workers in Florida will lose 7,128 jobs if Trump levies tariffs on $50 billion of Chinese imports. The tariffs and follow-on retaliation by China would result in the decline of the U.S. output by nearly $3 billion, and nearly 134,000 workers would lose jobs, most of them less-skilled workers.
The study also claims that manufacturing employment would rise in some sectors, but fall in others. For every one job gained, more than four jobs would be lost. According to the NRF study, the gains in metals and machinery will come at the expense of loss of jobs in agriculture, transportation equipment, and services.
NRF President and CEO Matthew Shay said in a press release that the livelihoods of American workers hang in the balance and the U.S. must resolve this trade dispute without resorting to job-killing tariffs and retaliation.
President and CEO of Consumer Technology Association Gary Shapiro said that tariffs could destroy the benefits of the recent tax reform and will have a negative impact on the economy. It will bring uncertainty to American businesses and devastation to some workers in key states, he said, adding that many might lose their jobs over a trade tax.