The Trump administrationās tariff scheme appears less and less likely to bring manufacturing jobs back to U.S. shores.
Businesses across the country are crunching the numbers and realizing that, despite Donald Trumpās insistence, they canāt balance out his tariff hikes across the supply chain.
āSome manufacturers who had plans to open factories in the country say the new duties are only adding to the significant obstacles they already faced,ā Bloomberg reported Friday.
Thatās because the supply chain to produce those goods in the United States simply isnāt there, requiring companies to import raw materials and factory equipmentāwhich Trumpās tariffs have made unaffordableāfrom abroad.
This is what Iāve been saying, building factories is already an expensive and time consuming process, then you slap high prices on everything you need to make a factory work itās going to be out of reach for basically anyone and the few who can afford it likely wouldnāt anyway because like this describes itās not fiscally responsible but also the US is in decline why would you be putting an enormous investment into a wildly unstable system? If you want manufacturing in the US building factories needs to be reasonable price wise and you need consumers with the funds to do the consuming, neither of which can be delivered now
What Trump and MAGA wanted can be doneā¦ but over a period of many years (like 20+ years) of careful and purposeful policy making.
ironically, much of the domestic industrial policy Biden signed into law was intended to do exactly this but Trump reversed course because corrupt reasons
āCorrupt reasonsā is actually giving him too much credit. Heās tearing up everything Biden did because Biden did it. He did the same thing with as much of Obamaās legislative agenda as he could.
Itās pure pettiness. He canāt allow his predecessors to have a legacy. His ego cannot afford it.
Trumpās pettiness, greed, unstoppable urge to gloat, and his understanding that if he lays the foundation for something useful, only his precedessors might reap the benefits
A combination of incentives and targeted tariffs only where necessary. For example, you might have incentives to build out EV chargers, incentives to buy EVs, ācarrot and stickā to encourage legacy manufacturers to start building EVs, incentives for new EV companies, incentives for battery recycling companies ā¦. Then come out in a dominant position for a new technology product, destined to build jobs and wealth for decades! Or you could, you know, throw that all away and then throw money at the dead tech of half a century ago
āConsumers with the funds to do the consumingā well wouldnāt that be grand. Unfortunately that would involve paying people and executives are allergic to basic decency even when the core of it is ultimately selfishness.
Also need regulatory approval, plus funding talent and all the employees for said factories, and then manage the logistics from the factories to distribution warehouses then to the stores.