On the eve of the implementation of United States tariffs against steel and aluminum imports from Canada, Mexico, and the European Union (EU), many political and financial experts are speaking out against the planned sanctions.
According to Tom Donohue, the president and CEO of the Chamber of Commerce, President Donald Trump’s decision to waive the tariff exceptions could potentially lead to the loss of 2.6 million American jobs. Donohue released a statement in a memo on Thursday, citing numerous outside studies to back up his projected data.
The job losses will come from a combination of the negative effects of the strict tariffs as well as a possible withdrawal from NAFTA, the long-standing trade agreement between the US and neighbors Mexico and Canada. The death of NAFTA could lead to the loss of as many as 1.8 million jobs alone.
In addition to today’s announcement that the US will be reinstating tariffs against three of the country’s biggest trade partners, the US is also involved in an escalating trade war with China that shows no signs of peaceful negotiation any time in the near future. Donohue used the memo to warn that tariffs waged against China could cost the US an additional 134,000 jobs plus 470,000 jobs lost to the steel and aluminum tariffs and an extra 157,000 jobs lost due to possible automobile tariffs.
Despite this report, the White House continues to assert that the tariffs will boost domestic industries while punishing other countries for unfair trade practices.