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Takeaways from the Key Takeaways
- An escalating trade war with China, where one of the U.S.'s top trading partners placed a 125% tariff on American goods, will likely make it more expensive for American companies to export products to China.
- American companies will likely slow hiring, and Trump's tariffs are expected to reduce manufacturing employment by 500,000.
- The trade war will likely affect farmers and agriculture companies as most of the $150 billion worth of goods that the U.S. exported to China are agricultural products.
Exports to China support tens of thousands of U.S. positions, and economists warn that these jobs could be threatened if tensions in trade between the two nations continue.
In an escalating trade war with China, the U.S. has a tariff of 145% on Chinese goods, and China has placed a tariff of 125% on U.S. goods. Economists say these trade tensions will likely make it more expensive for American businesses to import and export Chinese goods and could threaten the labor market.
According to a U.S. China Business Council report, exports to China will support 931,231 American job in 2022. Hiring and jobs in sectors most vulnerable to Chinese trade may be threatened if the two nations cannot reach a lasting trade agreement and high tariffs persist.
| A trade war with China could negatively affect American workers in sectors which rely on exports from China | |
|---|---|
| Sector | Work |
| Oilseeds, Grains | 178,736 |
| Education | 117,161 |
| Meat Products | 32,396 |
| Aerospace Products and Parts | 28,963 |
| Semiconductors & Components | 28,791 |
| Miscellaneous Crops | 28,391 |
| Pharmaceuticals and medicines | 26,081 |
| Industrial Machinery | 24,373 |
| Navigational and Measuring Tools | 22,961 |
| Motor Vehicles | 21,873 |
| Oil and Gas | 21,187 |
| Medical Equipment and Supplies | 20,929 |
| Miscellaneous Personal and Recreative | 18,636 |
| Royalties on Industrial Processes | 16,286 |
| Miscellaneous Business, Professional & Technology Services | 14,974 |
| Pulp and Paperboard Mill Products | 13,274 |
| Miscellaneous General Purpose Machinery | 12,678 |
| Petroleum and Coal Products | 12,011 |
| Personal Travel and Tourism | 11,470 |
| Basic Chemicals | 11,404 |
Tariffs still haven’t affected the labor market. In fact, in March, very few private-sector firms reported large-scale job cuts. Goldman Sachs’ economists predict that as Trump’s tariffs continue to create uncertainty and create more uncertainty, hiring will be one of the first economic elements to feel its effects.
Chinese Tariffs on US Exports Could Hurt Farmer and Rancher Most
More than a quarter of the jobs in the United States that could be affected if China imposes tariffs on U.S. products are dependent on agricultural trade. Farmers are worried they won't be able to afford to sell to their previous trading partners. This could have a direct impact on how they hire or fire workers.
"Farmers Union has always fought for fair trading relationships with other countries," said Rob Larew, president of the National Farmers Union, in a statement on April 2. "We rely on stable markets and fair competition to thrive, but the administration’s actions today create instability at the expense of our family farmers."
According to The New York Times, Trump’s administration has discussed providing emergency assistance to farmers as it did when it was fighting its trade war with China last year. But no aid has yet been implemented.
