Goldman Sachs: Tariffs Will Reduce U.S. Employment

ChainCatcher news, according to Jin Shi reports, one of the established goals of the Trump administration's tariff system is to increase employment in U.S. manufacturing. Goldman Sachs economists stated that this is a reasonable outcome, but they concluded that this growth may pale in comparison to job declines in other industries.

Goldman Sachs reviewed previous academic research. Most researchers found that for every 10 percentage point increase in tariff rates, employment in protected industries would increase by 0.2% to 0.4%. However, other industries were harmed. Goldman Sachs wrote that in terms of the scale of the U.S. economy, its impact "means that tariff protection has increased manufacturing employment by nearly 100,000, but the cost pressure on inputs has dragged down downstream employment by about 500,000."