Democrats warn Trump tariffs create uncertainty on Brexit for U.S. companies

First on Fox: A new report from the Joint Economic Commission minority warns the president’s influence Donald TrumpBy 2029, trade policies could cut U.S. manufacturing investment by as much as $490 billion.

Such investments that companies may postpone due to trade uncertainty include capital expenditures on new plants, factories and production facilities, as well as advanced R&D and purchases manufacturing equipment.

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The report, prepared by Democrats, warns that delaying such investments not only slows down innovation, but also has less risky factory jobs, weak supply chains and reduces the U.S. competitiveness against global power competitors China.

“Strengthening U.S. manufacturing is crucial to the future of our economy and national security,” said Sen. Maggie Hassan (DN.H.), a hierarchy member of the Joint Economic Commission. “While President Trump promised that he would expand our manufacturing industry, the report shows that instead, the confusion and uncertainty caused by his tariffs puts a burden on U.S. manufacturers, which could keep our country on for years.”

The Republican Joint Economic Committee Majority did not immediately respond to a request for comment from Fox News numbers.

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The Commission has achieved similarities between US tariff ambiguity and UK economic experience Brexit. Its analysis relies on a long-term forecast for non-residential fixed investments released in January 2025 and a study by the Bank of England on how extended trade policies can curb commercial investments in the UK from 2016 to 2021.

Brexit refers to Britain’s decision to leave in 2016 European Unionthen a 28-member political and economic group formulated common rules on trade, immigration and regulation.

Supporters of the EU, who protested outside the parliament during the National March, rejoined the EU in London, England on September 23, 2023. (Richard Baker/Picture/Getty Pictures)

“This has had a long-term impact on growth: Economists estimate that in the years since the Brexit vote, the UK’s true GDP (GDP) was 4 to 8% lower than before, mainly due to businesses retreating in a high degree of uncertainty,” the joint economic commission’s minority wrote in the report.

The team calculated that the extended period of U.S. trade instability could reduce manufacturing investment by 13% annually, totaling approximately $490 billion by 2029.

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The damage the industry has already caused will continue, the commission added. The report notes that turbulent businesses can still reduce their investment by an average of 1% per year in just one month (April), and until 2029, investment can still be about $42.2 billion in lost manufacturing spending.

Manufacturers are particularly susceptible to policy fluctuations, as decisions such as building factories or buying premium equipment require years of planning and bear a lot of costs that are difficult to reverse.

Here is the complete report of the Joint Economic Commission minorities: