Trump's tariffs to cut corporate profits and national employment — San Francisco Fed

A new study by the Federal Reserve Bank (Fed) of San Francisco warns that although Donald Trump's tariffs may boost US manufacturing jobs in the medium term, they will ultimately reduce overall employment and corporate profits nationwide.

The administration's tariffs are likely to shrink American employment by 0.2% over the next four years. Duties of 25% have already been imposed on imports from Canada and Mexico, 30% on Chinese goods, and 10% on products from other countries, as the bank commented on the matter. 

The San Francisco Fed reports that such measures will lead to a 0.2% decline in US employment over the next four years. Economists also note that job losses in the services and agricultural sectors will outweigh any gains in manufacturing.

Moreover, while company profits (adjusted for inflation) may go up in 31 states, key economic areas like California and Texas will see decreases. Therefore, the aggregate real business income across the United States is anticipated to contract by 0.4%.