U.S. Tariffs on Steel and Aluminum To Lead to Critical Job Losses

SEATTLE (Scrap Monster): The U.S. tariffs on steel and aluminum could have more impact, than expected earlier, says the latest research report released by D.C.-based economic research form The Trade Partnership. The report forecasts around 400,000 U.S. job losses, which is more than three times the earlier estimates. It predicts 16 job losses for every job created by the tariffs. The country’s imports and exports are expected to witness notable decline in the years to come.

The report states that tariffs, quotas and retaliation would harm the U.S. economy, reducing the GDP by 0.2% per annum in the short term. The workers in every sector, including those in other manufacturing sectors that use steel and aluminum, will be affected. The annual U.S. steel and non-ferrous sector employment is likely to increase by 26,280 jobs over the initial three-year period. However, the net employment is likely to see reduction of 432,747 jobs throughout the rest of the economy, thereby resulting in net loss of over 400,000 jobs.

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According to the study, nearly sixteen jobs would be lost for every steel or aluminum job created. The most notable job losses are in steel-consuming sectors, many of which are in Rust Belt and southern manufacturing communities. The production and low skill jobs will be the worst-affected. Every state in the country would see net loss of jobs, led by California, Texas and New York.

The U.S. had imposed 25% tariff on steel imports and 10% on aluminum imports on March 8^th from all countries except Canada and Mexico. BY end-April, tariffs on these two countries were postponed until June 1. Later on May 31^st, the President announced that tariffs will go into effect for all countries including Canada and Mexico. In the meantime, Argentina, Brazil, Korea and Australia has finalized agreements on quotas or tariffs with the U.S.