The Trump administration’s goal to reshore manufacturing has merit—the U.S. is overly reliant on foreign goods. But that doesn’t mean we need to make everything here at home, argues Manhattan Institute Senior Fellow Allison Schrager.
“While Trump’s industrial policy may create some manufacturing jobs, the American economy’s shift away from domestic production was structural, the result of long-running changes in our labor force and technology that neither tariffs nor subsidies can reverse,” she writes. Indeed, some countries are just better at making certain goods, like iPhones, which is why so many jobs moved overseas.
Some reshoring can be justified, Schrager notes, but “a wholesale reshoring agenda could wind up making American industries less competitive and less efficient, while benefiting only the well-connected.”
Read her take here.