You have heard Trump’s spiel to “Make America Great Again” (MAGA) by bringing manufacturing back to America by imposing tariffs on imported goods? Will it work and bring the manufacturing jobs that were once the backbone of America’s economy back? After all, these jobs buoyed the middle class in the later part of the 20th century. Let’s see by examining some facts driven by recent developments.
Some Jobs Are Coming Back
You heard that right, some manufacturing jobs are coming back to America, Yeah! Well, don’t celebrate so fast. Most young workers (read Gen Zers) aren’t enthusiastic about applying for them. According to Forbes, there will be 3.8 million new manufacturing jobs in America by 2033. That sounds like a lot, right? The only issue is that most of these new jobs don’t pay what young workers are expecting.
If you have ever seen TikTok videos like Dee’s African Perspective on YouTube, you will see hundreds of videos featuring mini documentaries from Gen Zers complaining that $45,000 (once a decent salary in America) isn’t enough to buy toilet paper anymore. The trouble is that the starting salary for most entry-level manufacturing jobs is less than $40,000.
Interestingly enough, the pandemic is part of the reason why manufacturing jobs (referred to as reshoring) are returning to America. It demonstrated that relying on one nation (namely China) for manufacturing is not a great idea because supply chains can be left vulnerable in the event of a global catastrophe.
Of course, automation and AI will play a greater role in the manufacturing process than it did in the past.
Could Robots Be Making Goods in America in the Future?
Yes, some manufacturing jobs are coming back to America, but the beings that make the goods may not be human. Robotic manufacturing could increase exponentially in the future. Part of the reason for that is because American workers are too expensive to hire. Remember Dee’s African Pespective? Another part of the reason is that Gen Z workers aren’t interested in manufacturing jobs. Trump’s tariffs also play a key role in that.
CNBC recently did a survey and found something that may not surprise most people: most manufacturing firms state that bringing manufacturing back to America could double their overall costs. They will, instead look for countries that have lower tariffs to source new manufacturing to. Interestingly enough, 61% of companies said that they felt that Trump’s tariffs amounted to corporate bullying.
81% of companies said that they would use more robots and automation in assembly lines if they did bring manufacturing back to America.
It’s a Mixed Bag
Yes, some manufacturing jobs are coming back to America, but it’s not the big tsunami that Trump predicted through his tariffs. Also, a good portion of those jobs will likely be manned by non-human workers. So, the answer to the question, “Are Trump’s tariffs successful in bringing manufacturing to America?” is “Not Really!”
