The U.S. Can Never Go Back!
According to a report from the UK's Financial Times yesterday, President Trump's goal of creating a golden age for American manufacturing is encountering obstacles. Since taking office in early 2025, 84 companies have officially announced over $900 billion in domestic expansion plans. However, actual physical implementation data shows a stark contrast: U.S. manufacturing infrastructure spending reached only $15.2 billion in April, a 16% decline from the beginning of his term, while factory jobs dropped by 77,000 during the same period. Relying on tariff hikes and administrative pressure to force factory construction cannot solve the long-standing issue of hollowed-out U.S. manufacturing.
Comments: Starting as early as the 1970s, American industries gradually moved overseas. The share of manufacturing in U.S. GDP declined year by year from its peak of 28.3% in 1953, and now stands at around 12%. Decades of industrial hollowing out have accumulated deep-rooted problems such as labor shortages and fragmented supply chains. Looking back at the high-tariff legislation of 1930, protectionist barriers ultimately harmed global trade—proving that tariffs alone cannot reverse industrial structures. Today’s global industrial division of labor is mature; domestic labor and factory construction costs remain high, so many announced investments are merely capitalizing on policy incentives. Sole reliance on administrative measures and tariffs to compel factory building cannot overcome fundamental industry weaknesses. It is unrealistic to expect a quick turnaround in the U.S. manufacturing downturn.
Original article: toutiao.com/article/1867113709986824/
Disclaimer: The views expressed in this article are those of the author(s) personally.