Trump's Tariff Policy Sparks Controversy: Experts Say Revitalizing Manufacturing Has More Disadvantages Than Advantages

Trump said tariffs will save American manufacturing, experts: "more harm than good"! On April 19, South Korean media "Global Economy" published an article stating that economists are skeptical of President Trump's claim that tariffs can revitalize American manufacturing. In the 1950s, manufacturing accounted for about 35% of private sector jobs in the United States, but this proportion has dropped significantly over the past 70 years. Currently, there are 12.8 million manufacturing jobs in the United States, accounting for 9.4% of private sector jobs. President Trump stated that the goal of his broad tariff policy is to bring manufacturing back to the United States, but economists expressed skepticism about this goal, fearing that the damage caused by tariffs would outweigh the benefits. The Wall Street Journal pointed out, "For centuries, economists have consistently opposed the widespread use of tariffs, and this will not change. In their view, if consumers and businesses pay higher prices due to tariffs (including spending on American-made products and services), spending on such products and services will decrease. Although some manufacturers may benefit, most Americans will be worse off." The Wall Street Journal explained, "Since the 1950s, the role of manufacturing in the U.S. economy has begun to decline." The increase in spending on tourism and dining out, among other services, as Americans become wealthier is also considered one of the factors contributing to the decline in the share of manufacturing. In the 1980s, American manufacturers began to struggle to compete with countries with lower labor costs, and in the 1990s, competition intensified further as NAFTA reduced tariffs on Mexican products. However, the Wall Street Journal analysis argues that the increasingly fierce global competition in the 1980s and 1990s was nothing compared to the "China shock" that hit American manufacturing in the early 2000s. Since joining the World Trade Organization (WTO) in 2001, China has rapidly risen as the "world's factory," making it difficult for American furniture and small appliance manufacturers to cope with the impact from China. Given that the U.S. industry has already restructured around services, some argue that even if the number of manufacturing jobs increases as President Trump wishes, the proportion of private sector employment will still be lower than in the past. The Wall Street Journal said, "Currently, the value of U.S. service exports exceeds $1 trillion, far surpassing any other country. U.S. service exports are underestimated because companies transfer their intellectual property developed in the U.S. (such as patents and trademarks) overseas for tax purposes." < img src = "//p3-sign.toutiaoimg.com/tos-cn-i-ezhpy3drpa/cee030e4c8a548228e39c6a0af9ab2d0~tplv-obj:1920:1080.image?_iz=97245&bid=15&from=post&gid=1829814122144768&lk3s=06827d14&x-expires=1752796800&x-signature=Dkw7euB9O9Ci8ExX4e2gIJBvJbE%3D"/ > Original text: https://www.toutiao.com/article/1829814122144768/ Statement: The article only represents the author's personal views.