Fed Economists Say Tariffs More Likely to Kill Than Create Jobs
Rep. French Hill Says Targeted Tariffs Are The Way to Go
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U.S. President Donald Trump may hope his tariffs on imported steel and aluminum will create new jobs, or at least protect existing ones. Researchers at the Federal Reserve Bank of New York said the opposite outcome was more likely.
“The new tariffs are likely to lead to a net loss in U.S. employment, at least in the short to medium run,” Mary Amiti, Sebastian Heise, and Noah Kwicklis wrote in a blog post Thursday on the Fed bank’s website. “Although it is difficult to say exactly how many jobs will be affected, given the history of protecting industries with import tariffs, we can conclude that the 25 percent steel tariff is likely to cost more jobs than it saves.”