Trade Partnership policy paper on Section 232 tariff impacts updated

The Coalition of American Metal Manufacturers and Users (CAMMU) has announced that economist Laura Baughman of the Trade Partnership has updated her March 13 policy paper on the estimated impacts of the Section 232 steel and aluminum tariffs.

The updated version reflects the current situation of tariffs being applicable to all countries, including Canada and Mexico, except those that have swapped tariffs for quotas (Korea, Argentina, and Brazil), and the retaliation from all the countries subject to tariffs.

According to Baughman, the tariffs, quotas, and retaliation would reduce U.S. GDP by 0.2 percent annually in the short term. While U.S. imports would decline, so too would U.S. exports. The tariffs, quotas, and retaliation would increase the annual level of U.S. steel employment and nonferrous metals (primarily aluminum) employment by 26,280 jobs over the first one to three years, but reduce net employment by 432,747 jobs throughout the rest of the economy, for a total net loss of 400,445 jobs. Sixteen jobs would be lost for every steel/aluminum job gained, and more than two-thirds of the lost jobs would affect workers in production and low-skill positions. Every state will experience a net loss of jobs, according to Baughman.

To read the full policy paper, click here.