A new study shows tariffs impacting U.S. equipment manufactures will cost the U.S. GDP $290 billion if continued for ten years. The Association of Equipment Manufacturers says the data released in the report show tariffs are “driving up the cost of production, delaying capital investments, and impeding job creation.”
The report, titled The Economic and Industry Impact of Protectionism Tariffs on the Off-highway Equipment Sector, estimates tariffs will increase costs of producing U.S. agriculture and construction equipment by six percent. With its higher steel-related product content, the costs of producing U.S. mining equipment will increase seven percent.
Equipment manufacturing executives have attributed the increasing costs of manufacturing in the United States to the Trump administration’s tariffs. Tariffs Hurt the Heartland, a campaign backed by AEM, found that the tariffs are costing businesses up to $2.7 billion each month and have caused exports of American products to plummet by 37 percent.