Tariff uncertainty threatens $490B in US manufacturing investment, report warns

"Strengthening American manufacturing is critical to the future of our economy and our national security," said Sen. Maggie Hassan, D-N.H., ranking member of the Joint Economic Committee. "While President Trump promised that he would expand our manufacturing sector, this report shows that, instead, the chaos and uncertainty created by his tariffs has placed a burden on American manufacturers that could weigh our country down for years to come." 

The Republican Joint Economic Committee Majority did not immediately respond to Fox News Digital's request for comment.

"This had long-term consequences for growth: Economists have estimated that, in the years following the Brexit vote, the U.K.'s real gross domestic product (GDP) was 4 to 8% lower than it would have otherwise been, primarily due to businesses pulling back on investment amidst high uncertainty," the Joint Economic Committee Minority wrote in the report.

The group calculates that a similarly prolonged period of trade instability in the U.S. could reduce manufacturing investment by 13% annually, totaling about $490 billion by 2029. 

The committee adds that even if trade fears were resolved immediately, the damage already inflicted on the sector would linger. The report noted that the turmoil businesses faced in just one month - April - could still lower investment by an average of 1% annually through 2029, equal to about $42.2 billion in lost manufacturing spending. 

Manufacturers are especially vulnerable to policy swings because decisions like building factories or purchasing advanced equipment require years of planning and carry significant costs that are difficult to reverse.

Here is the full report from the Joint Economic Committee Minority: