Wells Fargo economists don’t think Trump’s tariffs will bring many manufacturing jobs back to the US anytime soon. They say higher prices and uncertainty are hurting businesses’ ability to hire.
Higher Costs, Fewer Jobs
The economists explain that higher costs from tariffs force companies to either accept lower profits, raise prices for consumers, or do a bit of both. Neither option is good for job growth.
Reshoring: A Long, Expensive Road
Bringing manufacturing jobs back would take years and cost a fortune, according to the report. US labor costs are high compared to other countries, meaning US factories need lots of expensive equipment to compete. The economists estimate that getting manufacturing jobs back to their peak would need at least $2.9 trillion in new investment – and that’s a low estimate. This investment would take years, and costs would likely rise even further due to inflation and the need for more advanced equipment.
Other Challenges
The report also points out that lower birth rates and less immigration could make it harder to find enough workers, even if companies did invest heavily in new factories.
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