U.S. Tariffs Caused Price Hike and Loss of Manufacturing Jobs

The positive effect from import protection was seen more than offset by negative effects from rising input costs and retaliatory tariffs.

SEATTLE (Scrap Monster): The recent study carried out by the Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board states that the tariffs imposed by the Trump administration have led to higher prices and loss of manufacturing jobs.

The study report titled ‘Disentangling the Effects of the 2018-2019 Tariffs on a Globally Connected U.S. Manufacturing Sector’ notes that retaliatory tariffs imposed by trading partners have impacted the competitiveness of U.S. manufacturers in foreign markets. Moreover, it has led to higher costs in downstream industries. The positive effect from import protection was seen more than offset by negative effects from rising input costs and retaliatory tariffs.

According to the report, the top 5 industries affected by retaliatory tariffs are magnetic and optical media, leather goods, aluminum sheet, iron and steel, motor vehicles. Higher prices have impacted aluminum sheet, steel products, boilers, forging and primary aluminum production the most.