Goldman Sachs: Tariffs will reduce employment in the United States

One of the many established goals of the Trump administration's tariff system is to increase employment in American manufacturing. Economists at Goldman Sachs say this is a reasonable outcome, but their conclusion is that compared to job losses in other industries, this growth may seem insignificant. Goldman Sachs reviewed previous academic research. Most researchers found that for every 10 percentage point increase in tariff rates, employment in protected industries would increase by 0.2% to 0.4%. But other industries were hurt. Goldman Sachs wrote that given the scale of the U.S economy, its impact "means that tariff protection has increased manufacturing employment by nearly 100,000 people, but cost pressures have dragged down downstream employment by about 500,000 people."