Tariffs ≠ Manufacturing

Trump's Economic Legacy

Fascinating article on the MIT Technology Review page this week. Sweeping tariffs could threaten the US manufacturing rebound: They won’t bring back manufacturing, and they could stunt our ability to make tomorrow's breakthroughs, by David Rotman. 

According to Mr. Rotman’s thoughtful analysis (based on a number of conversations with industry leaders), the tariffs that the Trump administration believe will encourage the return of American manufacturing may actually have the opposite effect. Notes Rotman, “In fact, the high and crudely designed tariffs set out by the administration could damage a recent rebound in US manufacturing. Building factories and the supply chains they run on takes years—even decades—of steady investment. Meanwhile, tariffs have the immediate impact of boosting costs for critical supplies, many of which come from overseas—helping to raise prices and, in turn, slowing demand.”

That’s pretty significant.

Once again, Trump and his enablers prove themselves brilliant at doing precisely the wrong thing at the wrong time. 

But, alas, that probably doesn’t matter to his fans, who will…doubtless…continue to support the current administration, no matter no much damage it does them, so long as it lets them “own the libs,” avoid higher taxes on billionaires, and withdraw crucial services to people even more vulnerable than themselves.