Hicks: Trump Tariffs 'Profoundly Negative' For Indiana

Posted: Updated:
MUNCIE -

A Ball State University economist has released a policy statement that estimates fallout from President Donald Trump's tariffs could result in the loss of more than 30,000 Hoosier jobs over the next seven years. Center for Business & Economic Research Director Mike Hicks says the "very conservative" estimates suggest big hits to Indiana's Gross Domestic Product to the tune of $668 million next year alone if actions among the U.S., European Union, China and Canada persist. Sectors that stand to lose the most in Indiana, he says, include steel, aluminum, soybeans, corn and automobile manufacturing.

Hicks tells Inside INdiana Business the negative effects on the Hoosier economy would be felt short and long-term. "The retaliatory tariffs are going to target the things we're really good at. So we're going to see automobiles, automobile parts, anything that's steel-using, steel producing, anything that's agriculture is going to get clobbered," he said. "Indiana depends so heavily on manufacturing and agriculture that even a very modest trade war would be recessionary for the Midwest.

He says the U.S. appears to be headed toward a trade war, which historically, hasn't worked out well for the economy. "The long-term experience that we've had in previous trade wars has been that whatever re-shoring occurs -- it's been fairly minimal -- is more than offset by the general reduction in economic activity." Hicks adds he is sympathetic to Trump's overall idea of reducing tariffs in the long-term, but says the actions as they're being presented will have "unambiguously negative" consequences now and in the future.

"These tariffs are more than sufficient to threaten the U.S. economic recovery, which began in summer 2009," said Hicks in the statement. "The full tariff regime threatened by the U.S., the EU, China and Canada are sufficient to move the economy into recession in late 2018 or 2019. Fortunately, given the very rapid adjustments to trade policy, the likelihood of any tariff proposal surviving for more than a few weeks is very low."

You can view the full policy statement by clicking here.

Center for Business & Economic Research Director Mike Hicks tells Inside INdiana Business the negative effects on the Hoosier economy would be felt short and long-term.
  • Perspectives

    • Creating the Work Spaces that Draw Talent to Indianapolis

      The future economy will be driven by data, powered by robotics and heavily invested in the building blocks of nature – biotech and genetic engineering. That’s true of the economy nationwide, and it’s especially true here in Indianapolis, where dominant pharmaceutical and biotech companies are putting us at the cutting edge of the science-based economy. It all sounds larger than life. But the facilities that will house these industries will always be...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Allison and Stanley Chen provided the lead gift for the campaign. (Provided Photo/ISI)

      International School Launches Capital Campaign

      The International School of Indiana has publicly launched a capital campaign to establish a unified campus in Indianapolis. As part of the ONE ISI campaign, the school is looking to raise $6.5 million to build a new school building for pre-elementary and elementary students at the site of its middle and high schools. The public launch follows a 10-month silent phase of the campaign, during which ISI raised $5 million from more than two dozen donors. Currently, ISI's operations are...

    • Amanda Stephenson is the founder and president of Expert RN|MD. (Inside INdiana Business Photo/Mary-Rachel Redman)

      Medical Consulting Firm Opens Downtown Indy HQ

      A medical consulting startup is celebrating the grand opening of its new downtown Indianapolis headquarters. The Indiana Economic Development Corp. says Expert RN|MD, which provides medical consultation services to law firms and life science companies, is investing $1.7 million in the new location and plans to create up to 21 jobs by the end of 2023. The firm was founded in 2018 and recently renovated the 4,000-square-foot space in the downtown's Wholesale District. In an interview...

    • Lt. Governor Suzanne Crouch will be on hand for the announcement.

      Jobs Announcement Set for Indy

      City and state officials will Wednesday make a jobs announcement in downtown Indianapolis. Few details are available, however the Indiana Economic Development Corp. says leaders from an Indianapolis-based startup will be involved.

    • The person selected will fill the vacancy on the ballot left by Mike Pence.

      Vice President Pence to Visit Indy for Free-Trade Discussion

      Vice President Mike Pence will return to Indianapolis on Sept. 26 at an event to discuss the free trade agreement with Canada and Mexico. A panel will discuss the United States-Mexico-Canada Agreement, or USMCA, starting at 12:15 p.m. Sept. 26 at MacAllister Machinery, 6300 Southeastern Ave.

    • Money magazine judges Fishers as 3rd best place to live in the U.S.

      Fishers Makes Top 10 List of 'Best Places to Live'

      Three communities in Indiana made the top 100 list of best places to live in the country, but only one made the top 10. Fishers was judged by Money magazine as the third best place to live in the United States, behind Clarksville, Tennessee and Round Rock, Texas.