President Donald Trump’s implementation of tariffs is at odds with the needs of manufacturers, according to critics. Trump claims that his tariffs will bring back manufacturing jobs, but experts argue that this approach could lead to economic pain and destruction of the American manufacturing sector.
In contrast, President Biden’s economic program included a targeted plan to boost the manufacturing sector in advanced technology and critical industries. The Inflation Reduction Act, the CHIPS Act, and the bipartisan infrastructure law set up an immense subsidy scheme for production and purchase of high-tech goods.
Despite some hiccups, Biden’s plan worked, with manufacturing investment increasing by 220% from 2021 to 2024. New factories producing high-tech goods are going up all over the country, particularly in red states.
However, Trump is determined to undermine this progress. He hates aspects of Bidenomics and has frozen IRA spending, calling the CHIPS Act a “horrible thing” that should be repealed. This could lead to cancellation or closure of planned investment in electric vehicle (EV) assembly, battery cell production, and solar panel manufacturing.
Trump’s tariffs are also unpredictable and lack clear economic goals. He imposes tariffs randomly, reacts with outrage when targeted countries respond in kind, and sometimes dials them back or cancels them at the last moment. This creates significant economic uncertainty, making it difficult for companies to plan for the future.
Critics argue that Trump’s approach is misguided and could lead to a recession, which would undermine his own manufacturing program. The other half of Biden’s economic program was the American Rescue Plan, which stimulated red-hot growth in spending and employment, reinforcing the manufacturing sector.
Overall, Trump’s tariffs threaten the US manufacturing renaissance, which has been boosted by Biden’s policies. It is essential to address these issues and ensure that manufacturers can thrive in a stable and predictable environment.
Source: https://prospect.org/economy/2025-03-14-donald-trump-destroy-american-manufacturing