{"id":6094,"date":"2025-04-04T15:05:01","date_gmt":"2025-04-04T15:05:01","guid":{"rendered":"https:\/\/www.horsesforsources.com\/?p=6094"},"modified":"2025-04-04T15:05:15","modified_gmt":"2025-04-04T15:05:15","slug":"tariffs_strangle_american_industry_040425","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/tariffs_strangle_american_industry_040425\/","title":{"rendered":"Tariffs won\u2019t save American industry \u2014 They\u2019ll strangle it"},"content":{"rendered":"
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Tariffs are back in fashion \u2014 again. Some politicians love them. Pundits love to debate them. They\u2019re tough-sounding, crowd-pleasing, and give the impression that someone is finally<\/em> standing up for American workers.<\/p>\n There\u2019s just one problem: they don\u2019t work<\/strong> \u2014 at least not the way we need them to.<\/p>\n Sure, tariffs sound great in campaign speeches. “Let\u2019s tax foreign imports, bring factories home, and rebuild the middle class.” The rhetoric is nostalgic, nationalistic, and \u2014 unfortunately \u2014 economically naive<\/strong>.<\/p>\n Let\u2019s be clear. Tariffs aren’t inherently evil. In limited, strategic use, they can buy time for critical industries. But when wielded as a broad, blunt policy \u2014 as a primary economic lever \u2014 they don\u2019t deliver results. They create a cascade of consequences that hurt far more than they help.<\/p>\n Here\u2019s what really happens when you build a wall around the economy instead of investing in its foundation:<\/p>\n Yes, they reduce imports. But they also reduce exports. Why? Because other countries retaliate, and a stronger dollar makes U.S. goods more expensive. You don\u2019t \u201crebalance\u201d trade by slowing everything down. That\u2019s like fixing traffic by banning cars.<\/p>\n We\u2019re not living in 1955 anymore. U.S. factories can\u2019t just reopen and start making TVs and sneakers. Modern manufacturing is capital-intensive, automated, and globally distributed. Tariffs raise the cost of doing business \u2014 they don\u2019t attract it.<\/p>\n Tariffs make it more expensive to produce goods in America. Pair that with a rising dollar, and you\u2019ve priced yourself out of international markets. Suddenly, the \u201cMade in the USA\u201d label looks more like a premium surcharge than a selling point.<\/p>\n Tariffs are a tax \u2014 and not on foreign producers. On you<\/em>. Everything from groceries to electronics goes up in price. You may not notice it at first, but your wallet will. Inflation doesn\u2019t need much help these days, but tariffs are happy to pitch in.<\/p>\n Trade wars aren\u2019t fistfights \u2014 they\u2019re chess matches. And other nations will go after U.S. exports where it hurts: agriculture, aerospace, tech. Tariffs don\u2019t just invite retaliation \u2014 they guarantee it.<\/p>\n Say goodbye to cheap imported goods and hello to smaller selections and bigger price tags. Some items vanish entirely. No, it\u2019s not a supply chain apocalypse \u2014 it\u2019s just tariffs doing what they do best: making things harder and costlier.<\/p>\n Industries like biotech, machinery, and farming rely on global markets. Tariffs reduce their access, kill demand, and shrink payrolls. Whole regions feel the hit. If you’re building walls, don\u2019t be surprised when opportunities stop knocking.<\/p>\n Modern business runs on global inputs. Tariffs disrupt the flow, raise the costs, and force companies to scramble for alternatives. Often, those alternatives are slower, more expensive, and less efficient. Sometimes, companies just pack up and go elsewhere.<\/p>\n Put it all together: higher costs, weaker exports, lost jobs, reduced investment. That\u2019s not \u201ctaking back control.\u201d That\u2019s how you drag your economy into a slowdown \u2014 or kick off a recession if you’re really ambitious.<\/p>\n Under pressure, companies will embrace automation \u2014 but not the good kind. Not the kind that augments jobs or drives productivity. The kind that slashes headcount. Tariffs don\u2019t incentivize innovation. They incentivize downsizing.<\/p>\n Let\u2019s assume \u2014 generously \u2014 that tariffs succeed in nudging companies to bring some manufacturing home. There\u2019s still a problem: we don\u2019t have the workforce<\/strong>. Skilled labor in the U.S. is in short supply. We\u2019ve spent decades underinvesting in vocational training and tech education. You can build the factory, but who\u2019s going to run it?<\/p>\n The U.S. doesn\u2019t need more barriers \u2014 it needs better magnets. If we want to rebuild our industrial base, we need to make America the best place to invest, build, and hire.<\/p>\n That means:<\/p>\n Modernizing infrastructure<\/strong> so supply chains can run efficiently<\/p>\n<\/li>\n Incentivizing domestic production<\/strong> with smart tax policy, not tariffs<\/p>\n<\/li>\n Training a skilled workforce<\/strong> through serious investment in vocational and technical education<\/p>\n<\/li>\n Stabilizing regulatory and trade policy<\/strong> so companies can plan for more than 18 months at a time<\/p>\n<\/li>\n Supporting R&D and automation<\/strong> that drives innovation, not job loss<\/p>\n<\/li>\n<\/ul>\n In short, the U.S. needs a carrot, not a stick<\/strong>. You don\u2019t grow a competitive economy by punishing everyone who isn\u2019t domestic. You grow it by building the kind of environment where global businesses want to stay, invest, and scale.<\/p>\n They disrupt supply chains, confidence, and growth. They may win applause at rallies, but they lose traction in the real economy.<\/p>\n If the US wants to lead the next industrial revolution, we need to stop weaponizing policy and start investing in capability. We must compete smarter, build stronger, and attract better talent.<\/p>\n Tariffs are a headline. Strategy is what comes after.<\/p>\n","protected":false},"excerpt":{"rendered":" Tariffs are back in fashion \u2014 again. Some politicians love them. Pundits love to debate them. They\u2019re tough-sounding, crowd-pleasing, and…<\/p>\n","protected":false},"author":3,"featured_media":6095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[867,959,930,832,94,954],"tags":[1324,619,739,1377,1291],"organization":[],"ppma_author":[19],"class_list":["post-6094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","category-automation","category-economics-and-geopolitics","category-sourcing-best-practises","category-sourcing-change-management","category-supply-chain","tag-fersht","tag-phil-fersht","tag-supply-chain","tag-tariffs","tag-trump"],"acf":[],"yoast_head":"\n
\n1. Tariffs won\u2019t fix the trade deficit.<\/strong><\/h3>\n
\n2. Manufacturing won\u2019t come roaring back.<\/strong><\/h3>\n
\n3. U.S. exports lose their edge.<\/strong><\/h3>\n
\n4. Consumers pick up the tab.<\/strong><\/h3>\n
\n5. Other countries will punch back \u2014 and aim to hurt.<\/strong><\/h3>\n
\n6. Store shelves get thinner \u2014 and more expensive.<\/strong><\/h3>\n
\n7. Export-reliant jobs disappear.<\/strong><\/h3>\n
\n8. Supply chains start to crack.<\/strong><\/h3>\n
\n9. The economy slows \u2014 or worse.<\/strong><\/h3>\n
\n10. AI gets weaponized, not optimized.<\/strong><\/h3>\n
\n11. Even if factories come back, workers won\u2019t.<\/strong><\/h3>\n
\nThe Real Problem Isn\u2019t Imports. It\u2019s Incentives.\u00a0 More carrot and less stick please…<\/strong><\/span><\/h2>\n
\n
\nBottom Line: Tariffs don\u2019t make things \u2014 they break things.\u00a0<\/strong><\/span><\/h2>\n