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News » U.S. tariffs yet to deliver promised manufacturing job boom

U.S. tariffs yet to deliver promised manufacturing job boom

Photo from the Centre for Economic Policy Research (CEPR)

NEW JERSEY, UNITED STATES — Despite hopes that tariffs would rejuvenate the U.S. manufacturing sector, recent job data reveals a different reality. 

With the economy adding 228,000 jobs last month, manufacturing saw a meager increase of only 1,000 positions. This growth pales in comparison to significant job gains in sectors like healthcare, social assistance, retail, and transportation, underscoring the limited impact of tariff strategies on manufacturing employment.

Manufacturing’s misunderstood decline 

The U.S. continues to produce at historically high levels, not in terms of quantity, but through high-value products and sophisticated materials. This shift reflects a natural economic evolution rather than a decline. 

“The U.S. has done exactly what it’s supposed to do in economic theory,” explained an economist, highlighting a move towards industries that support higher labor costs and advanced technological integration.

Challenges in reviving manufacturing jobs 

The manufacturing sector’s transformation has been heavily influenced by automation and advanced technology, reducing the number of traditional manufacturing jobs. The graph from the St. Louis Fed’s FRED site illustrates a decline from 19,553,000 jobs in 1979 to 12,764,000 in 2025. 

Moreover, the technical skills required for modern manufacturing jobs are a significant barrier, with many positions remaining unfilled due to a lack of qualified candidates.

Long-term viability questioned amid political changes 

The debate continues over the effectiveness of tariffs and their long-term impact on the manufacturing sector. Daniel Friedman, a fiction author, expressed skepticism on X about the sustainability of new manufacturing initiatives, particularly if political shifts lead to the removal of tariffs. 

“Nobody is going to build a factory because of these tariffs, because the factory will take three years to build, and then a Democrat will be elected who will immediately lift the tariff, and the factory will no longer be economically viable,” he said.

This underscores the broader economic and political challenges in predicting and sustaining growth in manufacturing through protective trade policies.

In conclusion, while the job market shows overall growth, the anticipated resurgence of manufacturing jobs under current tariff strategies remains uncertain, hindered by economic evolution, technological advancements, and political instability.

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