From Yahoo Finance: 2025-03-31 05:07:00

President Donald Trump’s global trade war has hit the stock market, increased the chance of a U.S. recession, and raised inflation for American households. Trump claims the turmoil is worth it, aiming to boost U.S. production and revive manufacturing. However, trade experts doubt a significant shift of overseas factories to the U.S.

Several large manufacturers, including Hyundai, Honda, and Apple, have announced plans to locate factories or production in the U.S. But economists argue that the number of new jobs created might be small and could be outweighed by job losses during a recession. Trump’s tariffs have led to job losses in industries affected by higher duties.

Trump has imposed tariffs on steel, aluminum, goods from China, Canada, and Mexico. Recently, he announced a 25% tariff on imported vehicles and auto parts, set to increase car prices significantly. Reciprocal tariffs matching those of other countries will also take effect. Trump aims to reduce the trade deficit and boost domestic manufacturing.

Despite Trump’s efforts, some companies are hesitant to make long-term decisions based on uncertain policies. Moving production to the U.S. involves significant costs and risks, including a shortage of skilled workers. Some industries, like EVCO, find it challenging to shift production to the U.S. due to high labor costs and lengthy setup processes.

While Trump pushes for a U.S. manufacturing revival, experts question the feasibility and sustainability of such a goal. The challenges include shifting entire supply chains, dealing with mixed messages on tariffs, and navigating an uncertain economic environment. Bringing manufacturing back to the U.S. requires significant investments, skilled labor, and long-term planning.



Read more at Yahoo Finance: Trump says the ultimate fruits of tariffs will be worth the pain. Experts disagree.