Democrats warn Trump’s prices create Brexit -type uncertainty for American companies
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First on Fox: A new report by the minority of the joint economic committee warned on Monday that the repercussions of President Donald Trump’s commercial policy could reduce US manufacturing investments up to $ 490 billion by 2029.
These investments that companies can postpone due to commercial uncertainty include capital expenses of new factories, factories and production facilities, as well as research and development and purchases of advanced manufacturing equipment.
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The report, compiled by the Democrats, warns that the delay in these types of investments not only slows innovation, but also risks less factory jobs, lower supply chains and has reduced American competitiveness against world power rivals like China.
An employee of the factory works on the production line of laundry greater than GE Appliances on August 8, 2025 in Louisville, Kentucky. (Michael Hickey / Getty Images for GE devices)
“The strengthening of American manufacturing is essential in the future of our economy and our national security,” said Senator Maggie Hassan (DN.H.), a classification member of the joint economic committee. “While President Trump promised that he would broaden our manufacturing sector, this report shows that, instead, chaos and uncertainty created by his prices have placed a burden on American manufacturers who could increase our country for the years to come.”
The majority of the Republican joint economic committee did not immediately respond to the request for comments from Fox News Digital.
The Committee has established parallels between the ambiguity of American prices and the economic experience of the United Kingdom after Brexit. Its analysis is based on long-term projections of the non-residential fixed investment of the Congressional Budget Office, published in January 2025, and the Bank of England is looking for how the prolonged trade policy has slowed down commercial investments in the United Kingdom from 2016 to 2021.
Brexit refers to the British decision of 2016 to leave the European Union, then a political and economic block of 28 members which establishes common rules on trade, immigration and regulations.
Pro-EU supporters protest outside the Parliament against Brexit during their national march to join the European Union, on September 23, 2023 in London, England. (Richard Baker / in Pictures / Getty Images)
“This had long-term consequences for growth: economists estimated that, in the years following the Brexit vote, the real domestic product (GDP) of the United Kingdom was 4 to 8% less than it would have been, mainly due to the companies that release investments in the midst of high uncertainty,” wrote the minority of the joint economic committee in the report.
The group calculates that a period of commercial instability similar to the United States could reduce manufacturing investments by 13% per year, totaling around $ 490 billion by 2029.
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The Committee adds that even if commercial fears were resolved immediately, the damage already inflicted on the sector would linger. The report noted that turmoil activities were confronted in just a month – April – could further lower investments on average by 1% per year until 2029, or about $ 42.2 billion in manufacturing spending.
Manufacturers are particularly vulnerable to policies’ oscillations, as decisions such as the construction of factories or the purchase of advanced equipment require years of planning and taking significant costs that are difficult to reverse.
Here is the full report of the joint minority of the Economic Committee:
