Uncertainty Generated by Tariffs Threaten U.S. Manufacturing Jobs

Manufacturing employs 12.75 million men and women, contributes $2.33 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of all private-sector research and development in the nation. However, uncertainty regarding tariffs and trade agreements risks harming American producers in the manufacturing sector. The following manufacturing anecdotes from recent news coverage demonstrate how that potential for harm is already manifesting itself in practice to the detriment of the U.S. economy.

Sanden International

Wylie, Texas

Sanden is the world's largest air conditioning compressor manufacturer not owned or controlled by an automobile manufacturer, and supplies components to markets around the globe.

Tariffs Could Lead to Job Loss

"Sanden International (USA) of Wylie, Texas, warns it will have to lay off 39 of its 431 workers if 25 percent tariffs take effect on the components it uses to make car air-conditioning compressors."

Associated Press - 05/16/18

Cummins Inc.

Columbus, Indiana

Cummins Inc. designs, manufactures, sells and services diesel and alternative fuel engines, and is the largest independent maker of diesel engines and related products in the world.

Trade Disputes Disrupt Supply Chains

"Based in Columbus, Ind., Cummins imports small diesel engines and components such as turbochargers from its own plants in China to sell in the U.S. or use at its domestic plants. Beginning July 6, those engines and some of those components will be subject to a 25% tariff at the U.S. border. 'This is a big headache,' said Tony Satterthwaite, president of Cummins's distribution business. 'Making changes in your supply chain is not a three-week process.'"

Wall Street Journal - 06/22/18

Cree, Inc

Durham, North Carolina

Cree is a North Carolina-based producer of lighting-class LEDs, LED lighting and semiconductor solutions for wireless and power applications.

Tariffs Threaten Innovation and Jobs

"A North Carolina maker of lighting products tried to convince the Trump administration that paying tariffs on its goods coming out of China would threaten its spending on research and jobs in the U.S. It didn't work. Cree Inc., already contending with low-cost competitors in its light-emitting diode business, will face a 25% duty this week on LEDs shipped to the U.S. from its plant in China—costs the company said will wreak upon it 'disproportionate economic harm.' The fallout will lead to 'reductions in our R&D spend, our expansion of manufacturing facilities, and, therefore, the development of new cutting-edge' American intellectual property, Greg Merritt, vice president of marketing and public affairs, told the committee."

Wall Street Journal - 07/04/18

According to Trade Partnership Worldwide, Section 301 tariffs and retaliatory tariffs on U.S. goods are projected to jeopardize 10,952 manufacturing jobs

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