Can Tariffs Revive U.S. Manufacturing Jobs?

The Trump administration’s 90-day pause on “Liberation Day” reciprocal tariffs – meant to revive declining U.S. manufacturing jobs - offers a window of opportunity for U.S. policymakers to focus on the enduring source of U.S. economic advantage: technology innovation. 

  1. Why Tariffs?: Before the pause, the Trump administration had imposed extensive tariffs to address U.S. trade imbalances and revitalize U.S. manufacturing employment, which has significantly declined as a share of total employment over the years. 

  2. A Historical View: However, the share of manufacturing jobs relative to total employment has continued to fall despite previous increases in tariffs, likely due to broader economic shifts, including the U.S. economy’s transition to a service-based economy rather than a goods-based one. 

  3. Eyes on the Prize: The current 90-day pause on major tariff implementation provides policymakers a critical opportunity to refocus on the United States’ time-tested and stress-tested source of economic strength: innovation at the technological frontier. 
     

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Ahmed Shareef

Research Intern, Economic Security and Technology Department

Ameya Khanapurkar

Research Intern, Economic Security and Technology Department

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