Sweeping tariffs could threaten the US manufacturing rebound
2025-04-25T09:00:00Z
Despite the geopolitical chaos and market collapses triggered by President Trump’s announcement of broad tariffs on international goods, some supporters still hope the strategy will produce a “golden age” of American industry. Trump himself insists, “Jobs and…
The move to bolster US manufacturing was fueled by a sense during the beginning of the pandemic that the country must regain the ability to make critical products and technologies. The decline of US manufacturing had become obvious. Federal support to rebuild the industrial base came in a series of bills passed during the Biden administration, including the CHIPS and Science Act and the climate bill.
At the same time, opportunities offered by artificial intelligence and automation breakthroughs have spurred an appetite for new investments among many manufacturers. Many of those technologies are just starting to be deployed, but they promise a way for US producers to finally become more competitive with those in low-wage economies.
If the Trump tariffs slow or even reverse such progress, the impact on the country’s economic and technological future could be devastating.
There are a lot of reasons to want a stronger US industrial base. But it’s not mainly about whether we have countless well-paying jobs for those with only a high school diploma and little technical training, despite what you will hear from many politicians. Those days are mostly long gone.
Manufacturing jobs account for a little under 10% of total jobs in the US. That percentage hasn’t changed much over the last few decades—nor is it likely to grow much in coming years even if manufacturing output increases, because automation and other advanced digital tools will likely cut into the demand for human workers.
Still, manufacturing is critical to the future of the US economy in other ways. The invention of new stuff and production processes greatly benefits from an intimate connection to manufacturing capabilities and expertise. In short, your chances of successfully creating a new type of battery or AI chip are much greater if you’re familiar with the intricacies of manufacturing such products.
It’s a lesson that was often forgotten in the 2000s as companies, led by such Silicon Valley giants as Apple, focused on design and marketing, leaving the production work to China and other countries. The strategy created huge profits but severely crimped the United States’ ability to move ahead with a next generation of technology. In 2010, Intel cofounder Andy Grove famously warned, “Abandoning today’s ‘commodity’ manufacturing can lock you out of tomorrow’s emerging industry.”
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