Goldman Sachs Predicts Job Losses Due to Trump’s Tariff Policies
A recent analysis conducted by Goldman Sachs has projected that the comprehensive tariffs imposed by President Donald Trump could cause a significant increase in unemployment rates. This development follows the recent tariff impositions that have been a point of contention in economic discussions.
According to the report, although Trump’s tariff strategy might lead to the creation of 100,000 jobs in the manufacturing sector, it could simultaneously result in the loss of up to 500,000 jobs in other industries. These estimates do not take into account the potential of an economic recession, which could further exacerbate the job market situation.
Industries heavily affected by the tariffs include those that depend on components imported from abroad, such as the heavy machinery and semiconductor sectors. The conclusions drawn from the analysis are supported by various academic studies exploring the impact of tariffs on different economic parameters.
Tariffs act as taxes on imports, ultimately borne by American companies, which often leads to increased prices for consumers in the U.S. Despite this, President Trump has maintained that tariffs will serve as a revenue-generating tool and a strategic leverage point in international relations.
The initial broad-based tariffs were implemented on April 2, affecting 185 countries. However, following significant market fluctuations and a selloff of Treasury bonds, most tariffs were reduced to 10%. Notably, higher tariffs remain for Chinese goods, which represent approximately 17% of all U.S. imports.
Goldman Sachs had previously released findings indicating that Trump’s extensive federal spending cuts could also hinder job creation. The report noted, “Uncertainty about both tariffs and government spending cuts could depress job growth,” highlighting a potential monthly employment growth reduction by 20,000 jobs due to trade policy uncertainty. Additionally, federal spending cuts could decrease federal payroll growth by 25,000 to 30,000 jobs per month, with further impacts on sectors reliant on federal funding, including state and local government, healthcare, and education, potentially reducing hiring by 35,000 jobs.
While the long-term effects of Trump’s tariff strategy remain uncertain, Goldman Sachs’ research suggests that the administration’s objectives of increasing revenue and job growth may not be realized as intended. A White House spokesperson did not provide comments despite requests for a response.
The original article on this topic can be found here on the American Journal News website.
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