The U.S. Chamber of Commerce has blasted Donald Trump on his trade policies, claiming they would send the American economy into recession and cost 7 million U.S. jobs.
“Does a recession sound ‘great’ to you?” wrote J.D. Harrison, senior editor of digital content for the Chamber wrote in a blog post on their website Friday. “Does 7 million lost jobs sound like ‘winning?’ No, probably not. And yet, that’s exactly where our country would be headed under Trump’s trade policies, according to an analysis released last week.”
Trump’s approach is to nix free-trade agreements like NAFTA and rely instead on tariffs, which would make foreign products more expensive at home to keep American goods competitive.
Earlier in March Donald Trump criticized European Union nations for lowering their interest rates and said that to protect the U.S. economy, that tariffs needed to be raised.
“We just sit back and do nothing,” Trump, said on CNBC television. “That’s getting to be very dangerous as far as I’m concerned.”
Trump also sees tariffs as not only a policy of trade, but also one of foreign relations. He has called for a 45 percent tariff on all Chinese goods.
Such a policy would do serious harm to average Americans, according to economics experts.
Citing a study they commissioned from Moody’s Analytics, The Washington Post the retaliatory tariffs that countries like China would enact in response to Trump would bring about a disastrous recession.
“An economic model of Trump’s proposals, prepared by Moody’s Analytics at the request of The Washington Post, suggests Trump is half-right about his plans,” The Washington Post article reads. “They would, in fact, sock it to China and Mexico. Both would fall into recession, the model suggests, if Trump levied his proposed tariffs and those countries retaliated with tariffs of their own.”
“Unfortunately, the United States would fall into recession, too,” the article continues. “Up to 4 million American workers would lose their jobs. Another 3 million jobs would not be created that otherwise would have been, had the country not fallen into a trade-induced downturn.”
[U.S. Chamber of Commerce] [Bloomberg] [Washington Post] [Fortune]