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Offbeat Trump's trade war is already leading to layoffs and pain for American businesses

10:32  10 august  2018
10:32  10 august  2018 Source:   businessinsider.com

US mends ties with allies, prepares for trade war with China

  US mends ties with allies, prepares for trade war with China Gathering strength for a brutal trade war with China, the United States appears to be trying to patch things up with its friends. U.S. and Mexican negotiators are meeting in Washington Thursday and Friday to work on a rewrite of the North American Free Trade Agreement — an effort that looked virtually dead a few months ago. And last week President Donald Trump announced a cease-fire in a potentially destructive dispute with the European Union over trade in cars, trucks and auto parts.

President Donald Trump is waging a trade war on many fronts, with tariffs on steel, aluminum, Chinese goods, and more. While Trump argues that the tariffs will make the US economy stronger, so far the duties are leading to layoffs . Small businesses across the US are grappling with the increased cost

President Donald Trump is waging a trade war on many fronts, with tariffs on steel, aluminum, Chinese goods, and more. While Trump argues that the tariffs will make the US economy stronger, so far the duties are leading to layoffs . Small businesses across the US are grappling with the increased cost

Donald Trump in a suit and tie © Scott Olson/Getty Images

President Donald Trump's tariffs on imports of steel, aluminum, and some Chinese products have started pushing up prices for many US companies that rely on those items to create final products, forcing many firms to make tough decisions about where to cut costs.

Many large companies have for now decided to pass on those costs to consumers or absorb the losses into their profit margins. But some smaller US businesses have been forced to cut labor costs to offset the higher amounts they're paying for parts.

From Wisconsin to South Carolina, small businesses are starting to lay off employees, and they're citing Trump's tariffs. Many firms have warned that the worst is yet to come.

Trump Administration Moves Ahead With Tariffs on Canadian Newsprint

  Trump Administration Moves Ahead With Tariffs on Canadian Newsprint The tariffs are lower than what the Commerce Department initially imposed, but the decision is still a blow to the American newspaper industry, which is already struggling with declining revenue.WASHINGTON — The Commerce Department said on Thursday that it would proceed with tariffs on Canadian newsprint, a blow to an already-struggling American newspaper industry.

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As Donald Trump ' s trade wars continue to destroy businesses here in the United States, he wants to make one thing absolutely clear to the American public So, Trump lashed out at Harley Davidson on Twitter. He said, their employees and customers are already very angry at them, if they move, watch

Some examples:

  • Mid-Continental Nail, the largest US nail producer, laid off 130 workers after steel prices jumped. One of its plant managers said the entire business could shut down over the next few months.
  • Element Electronics, a TV manufacturer, plans to lay off 127 workers from its South Carolina factory as "a result of the new tariffs that were recently and unexpectedly imposed on many goods imported from China."
  • Brinly-Hardy, an Indiana-based maker of lawn-care equipment, laid off 75 workers. "We are collateral damage in this effort," Jane Hardy, the company's CEO, told The Washington Post.
  • The Tampa Bay Times said in April that it was forced to lay off 50 people because of a tariff on Canadian newsprint. Other newspapers in small communities, such as House Speaker Paul Ryan's hometown paper in Janesville, Wisconsin, have also been forced to lay off staff.

Some businesses, such as Moog Music, which manufactures electronic musical instruments, have not taken action but have warned that the tariffs could eventually lead to layoffs. Other small businesses have furloughed workers or paused expansion plans while they wait and see how the trade fights play out. Small operators in industries from lobster fishing to metal shapers have curtailed workers' hours.

The economy added a disappointing 157,000 jobs in July

  The economy added a disappointing 157,000 jobs in July Economists expected the government to report 190,000 job gains.The unemployment rate fell from 4% to 3.9%, the Labor Department said Friday.

President Donald Trump , it is said, is unleashing a global trade war , which is already beginning with promised retaliatory measures from our closest trading partners. Trump justified his action by claiming that steel and aluminum are strategic materials essential for national defense.

There's more layoffs in other areas. Suddenly people don't have money to go out to eat, so restaurants have to lay off their servers. are being laid off and 100% of it is related to Donald Trump ' s trade wars .

While the tariffs are causing acute pain for some companies, more widespread labor-market issues have not yet appeared. Trump's tariffs apply only to a concentrated number of industrial goods, and the total number of US imports hit with tariffs remains low.

The July jobs report showed a steady increase in employment and a strong labor market, but economists have warned that business concerns about tariffs could start to weigh on hiring growth if the trade battles continue to escalate.

According to a study by the Trade Partnership, a free-trade industry group, Trump's steel and aluminum tariffs will result in a net loss of more than 400,000 US jobs. Other estimates of the job losses are somewhat smaller.

Even more effects on jobs could come if Trump follows through on his threat to impose tariffs on imported cars and auto parts:

  • Volvo warned the administration that it could scrap 4,000 planned jobs in South Carolina if the tariff goes into place.
  • Other foreign manufacturers with plants in South Carolina, such as BMW, say they could also be forced to make layoffs.

A study by the Peterson Institute for International Economics found that a 25% auto tariff would lead to the loss of 195,000 US jobs over a three-year period.

Chicago-area manufacturer to lay off 150 people as it moves operations to Mexico, in part to avoid tariffs on Chinese metal .
A manufacturer of storage safes is closing its two Chicago-area factories and moving operations to Mexico, in part because of the Trump administration's tariffs on metal from China. Stack-On Products plans to lay off 128 people at its facility in Wauconda, Ill., and 25 people at its McHenry, Ill., plant when it closes both facilities Oct. 12, said Al Fletcher, human resources director for Alpha Guardian, the Las Vegas-based parent company."The operation is really not profitable," Fletcher said.

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