November 26, 2020 06:34 PM RSS

Trump Trade War: Worker Layoffs Climbing

  • Wall Street Rebel | James DiGeorgia
  • 08/01/2018 2:11 PM
Trump Trade War: Worker Layoffs Climbing

While President Trump is reportedly considering another ratcheting up of tariffs on Chinese imports his imposition of trade penalties is beginning to really hurting U.S businesses.

An increasing number of manufacturers, like snowmobile maker Snow Joe, are feeling the pinch of President Trump’s trade war. Joseph Cohen, the founder of Snow Joe is one of an increasing number of companies seeking wavers from the Trump Administrations tariffs. Choen during an interview said …We're all in this together  ..."

Jane Hardy, the CEO of a southern Indiana company that makes lawn-care equipment, reported that she had to lay off 75 employees because of President Donald Trump's trade war. Hardy is one of thousands of manufacturers, farmers and related businesses warning the White House that, unless they see relief from the tariffs soon, job losses will mount and factory closures are likely.

Trump so far has only stepped forward to protect farmers from the Chinese backlash from the trade war he started, last week setting aside $12 billion to help them, but now because he extended that aid to farmers, manufactures and business reliant on steel and aluminum are raising their voices to the level of a cacophony asking the President to extend aid to other and extend it to more products for as long as Trump’s punitive trade war continues.

This is insanity says Geoff Garbacz of Quantitative Partners a fund manager and research analyst working out of Wisconsin. The U.S. Chamber of Commerce estimates the price tag of bailing out all these additional businesses across all industries could be as much as $39 billion.

Jane Hardy's company, Brinly-Hardy, one of thousands of companies across America effected by Trump’s trade war has been in business since 1839. It the Civil War, many recessions and, but it might not survive this Trump trade war. Hardy buys steel from U.S. companies, but Trump's tariffs on foreign steel have sent domestic prices to skyrocket 33 percent since the start of the 2018. According to Hardy …

"We are collateral damage in this effort… We're going to be in the same situation as the farmers of needing to save U.S. manufacturing."

Trump is offering no help so far to the small and midsize companies that are especially vulnerable to the tariffs he’s imposing as part of his trade war battle plan despite their inability to absorb costs or shift production overseas as easily as larger companies.

Brinly-Hardy, for example find itself in a bind if the company raises its prices, foreign competitors will undercut the company. Instead, the company has been forced to cut almost 40% percent of its 200-person workforce, most of them blue-collar production workers at its plant in Southern Indiana.

Larger companies across the United States are also starting to take a hit or raise prices on consumers. Harley-Davidson has announced it’s moving some production overseas because of Trump’s trade war versus the European Union which has been cited by Whirlpool as the reason for losses while Coca-Cola and Caterpillar have just announced they’re raising prices because of 33% higher steel and higher aluminum costs.

Trump shows no sign of backing of his trade war strategy, saying during a speech last week at a U.S. Steel plant in Granite City, Illinois,

"This is the time to straighten out the worst trade deals we've ever had in the history of our country,"

These tariffs, he says, will force trading partners to negotiate, at which time Trump hopes to extract concessions, including lower tariffs on U.S. products sold overseas. Trump administration officials argue his trade war strategy is already working because the European Union, which sent top officials to the White House last week to begin working on a trade deal.

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