Layoffs from Trump tariffs are piling up. So are calls for more bailouts.
Jane Hardy, the chief executive of a company that makes lawn-care equipment, says she had to lay off 75 employees this summer because of President Trump’s trade war. As she fights to keep her southern Indiana business going, Hardy is one of several manufacturers warning the White House that, unless they see relief from the tariffs soon, job losses will mount and factory closures are likely.
Trump has repeatedly said he would protect American farmers in the trade war, last week setting aside $12 billion to help them, but he is facing pressure to extend aid to other industries if the tariffs remain in place or get extended to more products.
Extending those bailouts would be an expensive proposition. The U.S. Chamber of Commerce on Monday estimated the total price tag could hit $39 billion if Trump compensated the losses across all industries. It would take $7.6 billion to help car and automobile parts manufacturers alone, the Chamber said, calling it a “slippery slope” for Trump to determine who gets help and who doesn’t. The Chamber has been a vocal critic of the tariffs.
Critics of Trump’s trade policy are calling on him to de-escalate the trade war rather than try to bail out the businesses hurt by it. But if the trade fight continues and the midterm elections draw near, the White House stands to face pressure, including from Republicans, to extend more government aid.
That’s particularly true in states with contested races — including in Indiana, where Sen. Joe Donnelly (D) is trying to hold his red state seat against a GOP challenge.
Hardy’s company, Brinly-Hardy, has been in business since 1839. It survived recessions and the Civil War, but it might not survive a prolonged trade war. Hardy buys steel from U.S. companies, but Trump’s tariffs on foreign steel have caused domestic prices to rise, as well. Steel costs have jumped 33 percent since the start of the year, and Hardy says her costs are up even more. She was hit again by Trump’s first round of tariffs on Chinese products that went into effect in early July, another hefty cost eating into her bottom line. Other products she imports and says she can’t get domestically are on a list for a second round of tariffs on China likely to go into effect later this summer.
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