Jobs lost in a trade war with Mexico and China

President Trump threatened during his campaign to bring back jobs to the United States by erecting a 35 percent tariff on imports from Mexico and a 45 percent tariff on imports from China. Economists from the Peterson Institute ran a model assuming that the two countries would impose the same tariffs on U.S. imports. The forecast found that if that happened, U.S. investment would slow down as prices on goods in the United States increase and exports and imports drop, leading to losses in jobs related and unrelated to trade. The scenario suggests that other proposals to heavily tax imports could also come with risks to jobs.