Geopolitical Economy Report This is why Trump's tariffs will NOT bring manufacturing back to the US
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May 31, 2025 The discussion centers on why Trump's tariffs are unlikely to revive American manufacturing. It critiques the lack of a coherent industrial policy and the financialization of the U.S. economy. Comparisons are made with China's effective industrial planning and the missed opportunities under U.S. administrations. The impact of automation and inadequate infrastructure on manufacturing challenges is highlighted, along with the disconnect between Wall Street interests and the working class. The conversation underscores the need for strategic government intervention to stimulate real change.
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Trump's Tariffs Likely to Fail
- Trump's tariffs won't re-industrialize the U.S. because infrastructure, skilled workforce, and government planning are lacking.
- A Wells Fargo study says tariffs may hurt manufacturing by causing uncertainty and layoffs.
China's Industrial Planning Success
- China uses comprehensive industrial plans including state ownership and five-year plans.
- Strategic investments in infrastructure and public enterprises lower China's manufacturing costs drastically.
Biden's Efforts Reversed by Trump
- Biden attempted basic industrial policy with the Inflation Reduction Act and Chips Act.
- Trump reversed these efforts, canceling grants and moving away from industrial policy steps.