Infographic: Tariffs Become Moving Targets

“New Tariffs, the Economy, and Staffing,” by Staffing Industry Analysts (SIA) examined the “historic reversal” of more than nine decades of U.S. trade policy. While reactions to the developing trade war have “pushed the price of oil substantially lower,” steel tariffs have already “increased operating and investments costs,” reported SIA. 

Experts examined the link between capacity utilization growth and import growth for industries in the U.S. that produce goods. With imports expected to fall, industries where capacity utilization growth has no relationship with import growth or a negative relationship are those with the greatest opportunities. Of the goods producing industries examined, only one is suggested to potentially benefit from falling imports: Textile product mills.

Meanwhile, the Producer Price Index showed prices paid to producers at 0.4 percent in March at an annual rate of 2.7 percent—this provided a good indication of the measure of inflation at the producer level before President Donald Trump’s trade policies fully kick in. But the news is not all dire. As consumers shift from buying imports to buying goods produced in the U.S., industries with spare capacity are able to quickly ramping up, among them manufacturing.