- May 07, 2018 -
The U.S. government's strong push for trade protection measures will not help solve the domestic imbalance in employment and trade. For each additional post for a new tariff, five other jobs will be lost. Only a few industries and a few people will benefit, and the overall employment and economic prospects of the United States will be damaged.
A study by the Brookings Institution, a Washington-based think-tank, showed that if a small trade war breaks out globally, that is, if tariffs increase by 10%, most economies will reduce their gross domestic product by 1% to 4.5%, including US GDP. There will be a loss of 1.3%; if a serious trade war breaks out globally, that is, the tariff increases by 40%, the global economy will re-emerge into the Great Depression of the 1930s.
Gregory Dacco, an analyst at Oxford Economics Consulting Group, said that if the United States fails to extend the exemption period, the scope of steel and aluminum tariffs will spread from the current "30% of imports (steel and aluminum products)" to all major importers in the United States. "The risk is that there may be a large-scale supply chain shock, and negative effects will also affect the financial market."