Issues

The recent report “Costly Trade with China” released by the Economic Policy Institute, helps bring into focus the damage caused by the lopsided U.S.-China trade deficit, pointing out that 1.8 million U.S. jobs have been displaced since China joined the World Trade Organization in 2001. Jobs were displaced in every state and the District of Columbia, and nearly three-quarters of those jobs were in manufacturing industries.

The EPI study is one of the few that looks at the entire trade picture. It estimates the labor that would be required to produce a given volume of exports, and the labor that is displaced when a given volume of imports is substituted for domestic output. The job losses in this study represent an estimate of what employment levels would have been in the absence of growing trade deficits.