What’s new: The trade war between the world’s two largest economies has caused an estimated loss of up to 245,000 U.S. jobs, according to a study commissioned by the U.S.-China Business Council (USCBC), a body which represents major American companies doing business in China.
The report went on to warn that if trade tensions between the two countries continued to escalate, U.S. economic output could shrink by $1.6 trillion in real GDP terms by 2025 and result in 732,000 fewer jobs in 2022 and an additional 320,000 fewer jobs in 2025.
However, the study conducted by Oxford Economics, a research group headquartered in Oxford, said that if both the U.S. and China gradually scale back tariffs, it would create 145,000 U.S. jobs by 2025.
Why it matters: The USCBC’s study came just days before President-elect Joe Biden is set to take office on Jan. 20, succeeding outgoing President Donald Trump who initially launched the trade war with China in 2018.
On Thursday, Trump blacklisted nine Chinese companies, including commercial-plane maker COMAC and the world’s third-largest smartphone maker Xiaomi.
President-elect Joe Biden earlier said that he had no immediate plans to change the tariffs imposed under Trump’s administration and he would work more with allies to push against China’s economic practices.