Democrats warn Trump tariffs create Brexit-like uncertainty for US firms

First on the fox: A new report issued by the Joint Economic Committee minority warned on Monday that the repercussions of President Donald Trump’s commercial policy could reduce the United States investing $ 490 billion by 2029.

Such investments that companies may postpone due to trade uncertainty include capital expenditures on factories, plants and new production facilities, as well as research and development and purchase advanced manufacturing equipment.

The Planning of the Strong Manufacturing Association, the Monitoring Planning of Trump

The report, which is collected by Democrats, warns that delaying these types of investments not only slows innovation, but also risk the functions of the lesser factory, the weakest supply chains, and the decrease in American competitiveness against global power competitors such as China.

“The strengthening of American manufacturing is crucial for the future of our economy and national security,” said Senator Maggie Hassan (DN.H), a member of the Joint Economic Committee. “While President Trump promised that he would expand our industrial sector, this report shows, instead, that the chaos and uncertainty that his definitions have established has placed a burden on American manufacturers that can weigh our country for years to come.”

The majority of the Republican Joint Economic Committee did not immediately respond to the Fox News Digital request for comment.

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The committee drew similarities between the ambiguity of the American tariff and the economic experience in the United Kingdom after Britain’s exit from the European Union. Its analysis depends on long -term expectations for uninterrupted fixed investment from the congress Budget Office, which was released in January 2025, and England Bank’s research on how to confuse the long trade policy in the United Kingdom from 2016 to 2021.

Brexit refers to the UK Resolution 2016 to leave the European Union, then the 28 -member political and economic bloc that has established joint bases on trade, immigration and organization.

Supporters supporting the European Union, protesting outside parliament against Britain’s exit from the European Union during their national career to join the European Union, on September 23, 2023, in London, England. (Richard Baker/in pictures/Gety photos)

“This was long -term consequences for growth: economists estimated that in the years that followed the vote on Britain’s exit from the European Union, the true local product in the UK was less than 4 to 8 % of what it was, due primarily to companies that respond to investment amid high uncertainty,” the minority of the Economic Committee in the report wrote in the report.

The group calculates that a long period of instability of trade in the United States can reduce manufacturing investment by 13 % annually, with a total of about $ 490 billion by 2029.

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The committee adds that even if the commercial concerns are resolved immediately, the damage to the sector will remain. The report indicated that the turmoil companies that were faced in only one month – April – can still reduce investment by 1 % annually until 2029, equivalent to about $ 42.2 billion of manufacturing spending.

Manufacturers are particularly vulnerable to policy fluctuations because decisions such as building factories or buying advanced equipment require years of planning and carrying great costs that are difficult to reverse.

Below is the full report from the Joint Economic Committee minority: