Americans for Free Trade, a coalition of more than 150 businesses and associations, has released the following statement after the U.S. economy added a lower than expected 136,000 jobs in September, according to the Bureau of Labor and Statistics. Economists say job creation would have been more robust without the U.S.-China tariffs.
“Uncertainty caused by trade continues to threaten the economic expansion we’ve seen over the last few years. Trump’s tariffs have cost 300,000 American jobs, led to the worst manufacturing numbers in a decade and driven thousands of farmers into bankruptcy. American workers have a lot at stake as trade talks resume next week. Americans need a real solution that holds China accountable and ends these harmful tariffs.” – Jonathan Gold, Americans for Free Trade spokesperson
BACKGROUND
Manufacturing Declines For Second Month In A Row To Lowest Level In Ten Years. “In the surest sign yet that the trade war is hurting the American economy, manufacturing activity contracted for the second month in a row in September, falling to a level not seen in 10 years.” (Anneken Tappe, “America’s factories just suffered their worst month in a decade”, CNN Business, 10/01/19)
Consumer Spending In August Show Signs That “Rising Tariffs Are Sapping US Economic Momentum.” “Consumers slowed spending and businesses cut back on investment in August, signs that a wobbling global economy and rising tariffs are sapping U.S. economic momentum.” (Sarah Chaney & Paul Kiernan, “Global Slowdown Spreads Across U.S. Economy,” Wall Street Journal, 9/27/19)
Trade War Causes Consumer Confidence Index To Fall To A Three-Month Low In September. “Escalating trade tensions with China undermined consumer confidence in September, underscoring the dangers of a conflict that has harmed key business sectors such as manufacturing and farming and poses a threat to a record U.S. economic expansion. The consumer confidence index fell to a three-month low of 125.1 this month from 134.2 in August, the privately run Conference Board said Tuesday.” (Jeffry Bartash, “U.S. consumer confidence sinks to 3-month low on trade worries, softer jobs market,” MarketWatch, 9/24/19)
As Of September, Trade War Has Killed 300,000 Jobs. “Forecasting firm Moody’s Analytics estimates that Trump’s trade war with China has already reduced U.S. employment by 300,000 jobs, compared with likely employment levels absent the trade war. That’s a combination of jobs eliminated by firms struggling with tariffs and other elements of the trade war, and jobs that would have been created but haven’t because of reduced economic activity.” (Rick Newman, “Trump’s trade war has killed 300,000 jobs,” Yahoo! Finance, 9/10/19)
Trade War Has Triggered A Global Manufacturing Recession. “The trade tensions have rattled financial markets and triggered a global manufacturing recession. The trade-driven downturn in manufacturing is threatening the longest U.S. economic expansion in history.” (Lucia Mutikani, “U.S. trade deficit shrinks, gap with China remains elevated,” Reuters, 9/4/19)