With tariffs continuing to take a toll on U.S. businesses, farmers, communities, and families across the country, a new report by IHS Markit has outlined the impact of tariffs on the equipment manufacturing industry and the broader U.S. economy.
- Placing tariffs on about $265 billion of imports will hurt the U.S. economy, largely from the direct effect of higher prices, yielding average lost GDP of $29 billion a year for 10 years.
- The effect on employment is negative; the tariffs will suppress domestic job gains by 260,000 over 10 years.
- Consumers will pay higher prices and reduce their real spending by $23 billion per year throughout the forecast horizon (ending in 2027).
- Tariffs will increase costs of producing U.S. agriculture and construction equipment by 6%; with its higher steel-related product content, the costs of producing U.S. mining equipment will increase 7%;
- Total loss in employment related to diminished output of all off-highway equipment is projected to end the forecast period with a loss of 20,700 jobs.