A prominent U.S. business lobby group has issued a stark warning that intensifying trade hostilities between the United States and China could endanger thousands of American jobs and disrupt key industries across the country.
In a report released Tuesday, the American Business Alliance (ABA) cautioned that the latest round of tariffs and retaliatory measures between the world’s two largest economies is beginning to ripple through supply chains, particularly in manufacturing, agriculture, and technology sectors.
“The economic fallout from this escalating trade conflict is no longer theoretical it’s hitting American businesses and workers in real time,” said ABA President Linda Morrison. “We are hearing from companies daily that they are being forced to reduce production, delay investment, or lay off staff.”
The ABA report, compiled from surveys and interviews with over 500 U.S. companies, estimates that up to 200,000 jobs could be at risk if trade tensions continue to rise through mid-2025. It highlights shrinking export orders, rising input costs due to tariffs on Chinese goods, and growing uncertainty in global markets as key stressors on American firms.
Small and medium-sized enterprises (SMEs), many of which rely heavily on Chinese suppliers or customers, are particularly vulnerable. In sectors like electronics, automotive parts, and consumer goods, executives say they face mounting pressure to relocate operations or absorb higher costs with few viable alternatives.
The warning comes as Washington and Beijing exchange sharp rhetoric and punitive measures over trade imbalances, intellectual property disputes, and geopolitical tensions. The Biden administration has defended its stance as a necessary measure to protect national interests and level the playing field, but business groups argue that the strategy is backfiring domestically.
“Tariffs may be aimed at China, but the collateral damage is being felt on Main Street America,” Morrison added.
Economists say prolonged hostilities could also dampen broader economic growth in both nations. Some experts are urging renewed dialogue and a more targeted approach to trade enforcement that minimizes harm to American workers.
The White House has yet to respond directly to the ABA’s findings, but officials have indicated that new rounds of trade negotiations may be scheduled later this quarter.
As the economic stakes rise, pressure is mounting on policymakers to balance geopolitical objectives with the urgent need to protect American livelihoods.
source: scmp.com