Imposing United States tariffs on nearly all foreign imports would create about 10 million American jobs while boosting domestic output by nearly 20 percent, a new study finds.The study, conducted by the Coalition for a Prosperous America (CPA), reveals that increasing U.S. tariffs by 15 percent for all imported products and by 35 percent on products in vital supply chains would create about 10 million American jobs and generate over $600 billion in new revenue.
About three million of those 10 million new jobs would be at American manufacturing plants which would then support about 6.9 million new service industry jobs. Prior research has shown that every one durable manufacturing job supports 7.4 new jobs in the service industry.
Overall domestic output, according to CPA researchers, would jump 19 percent with tariffs across the board, with a 52 percent increase in output from the electrical industry, a 54 percent increase in output from the textiles and clothing industry, and a 30 percent increase in output in chemical manufacturing.Tariffs on all foreign imports also translate to tax cuts for Americans.
As tariff revenue would increase to nearly $700 billion annually, lawmakers would be able to hugely cut income taxes for working- and middle-class Americans without sacrificing public services.
“…[T]he federal government could abolish corporate taxation outright or cut personal income taxes by 25 percent,” CPA researchers write. “In our simulation, we turn the $603 billion gain in tax revenue into household and business income to avoid the deflationary effect of the government absorbing more funds.”
U.S. free trade policies have resulted in decades of job cuts, stagnant wages, and a collapse of heartland American communities.
From 2001 to 2018, U.S. free trade with China has eliminated 3.7 million American jobs from the economy — 2.8 million of which were lost in American manufacturing. During that same period, at least 50,000 American manufacturing plants closed down.
This happened despite free trade advocates’ claims that NAFTA would create a million American jobs. Instead, the free trade deal helped eliminate at least five million manufacturing jobs from the U.S. economy while driving down wages.
KORUS, the free trade deal that the U.S. entered with South Korea, helped eliminate at least 95,000 American jobs from 2011 to 2015 as trade deficits skyrocketed.