Ford Motor Company just announced layoffs in the midst of a reported $1 billion in tariff-related losses. Auto sales are down due to trade tariffs that President Trump imposed on metal and other car-related materials. Competitive Enterprise Institute trade policy expert Ryan Young says this sort of economic calamity is not surprising.
“President Trump's push towards government-managed trade is starting to show its effects. New trade barriers have already cost Ford a billion dollars, and the company, already in the midst of a reorganization, is laying off employees.
“Trump's new taxes on foreign goods are intended to stimulate American manufacturing, but they are having the opposite effect, just as economists across the political spectrum predicted. U.S. manufacturing output was already near a record high before the new tariffs, and did not need any help, especially of this counterproductive variety.
“President Trump should repeal his new tariffs, and Congress should pass legislation preventing him from causing further damage to the economy.”
Ryan Young coauthored a recent report explaining all the economic harms caused by trade tariffs and other barriers. See:
Analysis: Common Myths and Facts about Trade
Report: Traders of the Lost Ark