Trump Tariff Plan Could Devastate Connecticut Defense Industry
President Trump’s executive order imposing tariffs on imported steel and aluminum will have huge repercussions on the Connecticut defense industry.
Trump’s chief economic adviser Gary Cohn, who tendered his resignation last week, says the tariffs would increase the cost of raw materials with a 25 percent increase in steel and 10 percent in aluminum.
But more worrisome for the contractors would be if overseas governments retaliate against them in the commercial aviation sector.
Stocks of defense contractors, including General Dynamics and Lockheed Martin, fell sharply last week upon news of the tariff.
Trade Partnership Worldwide, a non-partisan pro-trade group, says that there will be a net loss of 146,000 U.S. jobs if the proposed tariffs on aluminum and steel are applied on imports from all countries.