The American duties on steel and aluminum imports will create thousands of new jobs in local manufacturing companies and will compensate for the loss of labor in other industries, according to a study by the Coalition of Prosperous America. Also according to their data, the economic growth will slow down very slowly.
The nonprofit organization supported the skepticism of the US administration on free trade. It believes that customs duties of 25% on imports of steel and 10% on imports of aluminum will create about 19,000 new jobs. The loss of jobs in the secondary sectors and in other parts of the economy will be much more insignificant. Following the imposed duties, the US will lose 1.4 billion USD or 0.8% of the GDP.
“The small decline in GDP is the result of the tariffs in medium-term”, said Jeff Ferry, the director of Coalition for a Prosperous America. “In the long run, I expect the consequences of the duties to be positive because long-term analysis shows extra production, revenues, jobs and investment”, added he.
The study is published at a time when many predict that contradictory import duties will damage the secondary sectors of the economy that use raw steel and aluminum to produce consumer goods such as cars and beverage cans.
On March 1, Harbor Intelligence announced that following the Trump duties it will increase production jobs by around 1,900, but between 23,000 and 90,000 jobs in US manufacturing will be lost.