Impact of US tariffs on the economy

A recent study published by the Economic Policy Institute found that US steel and aluminum tariffs did not hurt the economy or resulted in serious job losses. The study noted that there is no evidence of widespread negative economic impact from the high steel and aluminum tariffs imposed by the Trump administration against foreign governments.

Since the announcement of 10% tariffs on aluminum products in March this year, three plants have resumed operations. In addition, one plant has announced significant capacity expansion. During this period, American aluminum companies created about 300 new jobs. In addition, the industry has attracted about $ 3.3 billion. US new investment, which, in turn, will lead to the creation of at least 2,000 new jobs. More than 200,000 jobs have been added in the US manufacturing sector overall since tariffs were introduced, according to Labor Department official figures.
Aluminum tariffs rose by $ 124 million in October 2018 over the previous year, according to the latest government data.

However, critics stressed that China continues to subsidize its aluminum industry despite tariffs. China's huge overcapacity is the main problem facing the industry, they said. The recent tariff structure has clearly failed to address this serious problem. The unified tariff approach needs to be reviewed, they said.