Democrats warn Trump tariffs create Brexit-like uncertainty for US firms

FIRST ON FOX: A new report from the Joint Economic Committee Minority warned Monday that fallout from President Donald Trump‘s trade policy could slash U.S. manufacturing investment by as much as $490 billion by 2029. 

Such investments that businesses may defer because of trade uncertainty include capital expenditures on new factories, plants, and production facilities, along with research and development and purchases of advanced manufacturing equipment. 

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The report, compiled by Democrats, cautions that delaying these kinds of investments not only slows innovation but also risks fewer factory jobs, weaker supply chains, and diminished U.S. competitiveness against global powerhouse rivals like China. 

“Strengthening American manufacturing is critical to the future of our economy and our national security,” said Sen. Maggie Hassan (D-N.H.), ranking member of the Joint Economic Committee. “While President Trump promised that he would expand our manufacturing sector, this report shows that, instead, the chaos and uncertainty created by his tariffs has placed a burden on American manufacturers that could weigh our country down for years to come.” 

The Republican Joint Economic Committee Majority did not immediately respond to Fox News Digital’s request for comment.

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The committee drew parallels between U.S. tariff ambiguity and the U.K.’s economic experience after Brexit. Its analysis relies on long-term projections of nonresidential fixed investment from the Congressional Budget Office, released in January 2025, and Bank of England research on how prolonged trade policy confusion curbed business investment in the U.K. from 2016 to 2021.

Brexit refers to the U.K.’s 2016 decision to leave the European Union, then a 28-member political and economic bloc that set common rules on trade, immigration, and regulation.

Pro-EU supporters, protest outside parliament against Brexit during their national march to rejoin the European Union, on Sept. 23, 2023, in London, England.  (Richard Baker/In Pictures/Getty Images)

“This had long-term consequences for growth: Economists have estimated that, in the years…