The trade war between the United States and China was started by Trump in an attempt to protect American jobs, but a study released Thursday found it was in fact costing the United States up to 245,000 jobs.
US President Donald Trump’s trade war with China has resulted in a loss of up to 245,000 US jobs, but a gradual reduction in tariffs on both sides would spur growth and result in 145,000 more jobs by 2025, study commissioned by the United States and China. Business Council Trade Shows (USCBC).
The group, which represents the main US companies doing business in China, said the Oxford Economics study also includes an “escalation scenario” that estimates that a significant decoupling of the world’s two largest economies could reduce US gross domestic product of $ 1.6 trillion over the next five years. years. That could lead to 732,000 fewer jobs in the United States by 2022 and 320,000 fewer jobs by 2025, he said.
The study was released just days before President-elect Joe Biden took office and began a major analysis of U.S. trade policy, including consultations with Democratic allies on the punitive U.S. tariffs imposed by Trump. Biden has said he does not anticipate any immediate changes to Trump’s tariffs, but said he will work with his allies to pressure China to change its trading behavior.
USCBC President Craig Allen, who has supported Trump’s efforts to change China’s trade and technology transfer policies, said it was important for the group to articulate the consequences of political choices in the relationship. American-Chinese.
“In the case of tariffs, it’s very important that we understand the full economic cost of those choices,” Allen said at a briefing.
The study estimates that U.S. exports to China support 1.2 million jobs in the U.S. and that Chinese multinational companies directly employ 197,000 Americans, while U.S. companies invested $ 105 billion in China in 2019.
“With China expected to generate about a third of global growth over the next decade, maintaining access to the Chinese market is increasingly critical to the global success of US businesses,” the study said.