Autoworkers, farmers and alcohol distillers are among a set of U.S. workers who risk losing their jobs as a result of potential tariffs on Canada, China and Mexico, experts told ABC News.
Trump said Monday afternoon he plans to talk to China in the next day or two about tariffs on that country.
Potential retaliatory tariffs slapped on U.S. exports could prove another cause of layoffs, the experts said, since U.S. firms dependent on selling products overseas risk weakened performance.
“Manufacturers will bear the brunt of these tariffs,” Timmons said, adding that the policies would put “American jobs at risk.”
The production slowdown may lead to job cuts at companies indirectly impacted by the tariffs, such as car dealerships and auto-part sellers, experts said.
One group of U.S. workers includes farmers, autoworkers, and alcohol distillers. S. ABC News spoke with experts about workers who could lose their jobs due to possible tariffs on China, Mexico, and Canada.
The U. A. According to the White House, the president was scheduled to sign executive orders on Tuesday imposing the 10 percent tariff on Chinese goods and the 25 percent tariff on goods from Canada and Mexico.
Trump said Monday that he would temporarily suspend the proposed tariffs on all Mexican products and the majority of Canadian goods, putting them on track to go into effect in early March. Following Trump’s discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, the postponements were announced. On Monday afternoon, Trump announced that he would discuss tariffs on China with the country in the coming day or two.
Some U. A. Because importers usually pass on a portion of the higher taxes to consumers, consumers and economists are concerned about the possibility of tariff-driven price increases.
However, a less well-known consequence of the possible tariffs might occur as some retailers find it difficult to offer imported goods at competitive prices while manufacturers deal with rising raw material costs like lumber and auto parts, according to experts. They added that a decline in sales could result in job losses.
Retaliatory tariffs that could be imposed on the U.S. S. Exports may be another source of layoffs, according to experts, since U.S. S. Businesses that rely on exporting their goods run the risk of performance declines.
North Carolina State University operations and supply chain management professor Rob Handfield told ABC News, “It’s like Trump took a grenade and threw it into the economy, and he walked away to see what happens.”.
An ABC News request for comment was not immediately answered by the Trump administration.
Trump said the tariffs target China, Canada, and Mexico for manufacturing and transporting illegal drugs that reach the United States in a series of social media posts over the weekend. In a Sunday Truth Social post, Trump acknowledged that the tariffs might result in some financial hardship in the United States but urged the three nations to address his concerns. S. .
“YES, MAYBE (AND MAYBE NOT!) WILL THERE BE PAIN? However, we will restore America’s greatness, and the cost will be justified,” Trump wrote.
Several labor unions and trade associations have issued warnings in recent days regarding job losses linked to tariffs.
In the industry that employs millions of Americans, small and medium-sized businesses run the risk of “significant disruptions” due to potentially high energy prices and expensive supply chain workarounds, according to Jay Timmons, president and CEO of the National Association of Manufacturers.
“These tariffs will disproportionately affect manufacturers,” Timmons stated, adding that the measures would jeopardize “American jobs.”. “.
The Distilled Spirits Council, a trade group that represents North American alcoholic beverage producers, warned that tariffs would hurt companies in all three nations. According to the group, “preserving equitable and reciprocal duty-free access for all distilled spirits is essential for promoting employment and mutual development.”.
U.’s risks. S. . The auto industry, which employs roughly 4 million people, is arguably the best example of workers, according to experts.
U. S. . Christopher Conlon, a professor of economics at New York University who specializes in trade, told ABC News that automakers have strong ties to Canada and Mexico because goods frequently move back and forth between the two nations before an automobile is fully assembled.
The two top U.S. countries are Mexico and Canada. S. trading partners for both completed automobiles and auto parts, per a Cato Institute analysis of U.S. S. The International Trade Commission.
Parts must be shipped across the border five, six, or seven times as part of the supply chains. The additional expenses could raise car prices by up to $10,000 and reduce sales, Conlon stated. “If a part is taxed at a rate of 25 percent each time it crosses the Canadian border, that will add up really quickly,” he said.
Conlon continued, “There will be fewer shifts as a result of the companies having to reduce production.”.
Jobs at businesses indirectly affected by the tariffs, like auto dealerships and auto-part sellers, may be lost as a result of the production slowdown, according to experts. In a statement to ABC News, the American International Automobile Dealers Association warned that if the industry falters as a result of the tariffs, over 550,000 employees at auto dealerships that represent foreign brands could lose their jobs.
Indeed, according to some experts, jobs may increase in certain domestic industries that are shielded by the tariffs, like the steel and energy sectors. According to them, even those companies might face difficulties if the tariffs reduce consumer demand.
According to Jason Miller, a Michigan State University supply chain management professor, potential job gains in some industries would not balance the losses in others, as he told ABC News.
“It’s very hard to see how this will benefit employment in the United States overall. A. Miller remarked.
Ben Siegel of ABC News helped with this story.