The manufacturing sector in the US has added 36,000 jobs in June this year. This has been the most so far in this year. Now as fears grow that President Trump’s trade war with China, Europe, and other nations could undermine the gains that have been made previously.
The Trump administration has now imposed new tariffs on approximately $34 billion worth of Chinese goods. The Office of the United States Trade Representative is considering an additional $14 billion worth of goods as well. Trump has threatened to increase that amount by as much as $500 billion.
After Trump, now China has pledged to impose dollar-for-dollar retaliatory tariffs. China’s Ministry of Commerce also quoted that the new duties violate World Trade Organization rules and mark the beginning of the largest trade war in economic history to date.
The manufacturing industry has been booming since the start of this year when Republican-only backed tax law went into effect. The capital spending has been contaminated as companies take advantage of a provision in the law that let businesses deduct the full cost of non-real estate assets from their on-paper income.
The concerns over the Trump administration’s trade actions are petrifying the investments, as businesses waive off major purchases in the middle of an escalating trade war between the U.S. and its trading partners.
Jay Timmons, the Chief Executive Officer in his statement said that tariffs will bring retaliation and possibly more tariffs. According to him, no one wins in a trade war, and it is America’s manufacturing workers and working families who have to bear the brunt of these continued tariffs. He also added that manufacturers want to see the administration get China back to the negotiating table as soon as possible to redefine the U.S.–China economic relationship for the better.