A Ball State University economist has released a policy statement that estimates fallout from President Donald Trump’s tariffs could result in the loss of more than 30,000 Hoosier jobs over the next seven years. Center for Business & Economic Research Director Mike Hicks says the “very conservative” estimates suggest big hits to Indiana’s Gross Domestic Product to the tune of $668 million next year alone if actions among the U.S., European Union, China and Canada persist. Sectors that stand to lose the most in Indiana, he says, include steel, aluminum, soybeans, corn and automobile manufacturing.
This story by Dan McGowan originally appeared in Inside INdiana Business.
Hicks told Inside INdiana Business the negative effects on the Hoosier economy would be felt short and long-term.
“The retaliatory tariffs are going to target the things we’re really good at. So, we’re going to see automobiles, automobile parts, anything that’s steel-using, steel producing, anything that’s agriculture is going to get clobbered,” he said. “The long-term experience that we’ve had in previous trade wars has been that whatever re-shoring occurs – it’s been fairly minimal – is more than offset by the general reduction in economic activity.”
Hicks added he is sympathetic to Trump’s overall idea of reducing tariffs in the long-term but said the actions as they’re being presented will have “unambiguously negative” consequences now and in the future.
“These tariffs are more than sufficient to threaten the U.S. economic recovery, which began in summer 2009,” said Hicks in the statement.
You can view the full policy statement by clicking here.