Sweeping tariffs could threaten the US manufacturing rebound

The United States was great in inventing new things, but it is poor in making them.

Hope is that this position changes with the country building manufacturing muscles. The risks are especially high. The value of the production of strategic goods and their supply chains – local – critical minerals, critical minerals, and semi -advanced connectors – have become clear to both politicians and economists.

If we want to transform scientific breaches today in energy, chips, drugs, and major military technologies such as drones into actual products, the United States will need to be again manufacturing force.

Limited definitions can help. This is especially true. An example of rare Earth magnets, which are found in everything from electric motors to drones, for example. “For decades, China immersed the US economy with low -cost magnets,” she says. “All the local magnet manufacturers have come out of the work.”

Now, it suggests that the customs tariff can provide short -term protection for American companies that develop advanced manufacturing technologies for making these products, which helps them compete with low -cost versions in China. “You will not be able to rely on definitions forever, but it is an example of the important role that definitions can play,” she says.

Even Harvard Xih, which is a “crazy” Trump tariff, that the most limited versions can be a useful tool in some circumstances to give temporary protection to the market to local manufacturers who develop early stage techniques. But he adds that such definitions should be “very targeted” and soon disposed of.

For a successful use of definitions, “you really have to understand how global trade and supply chains work,” says Shih. “Trust me, there is no evidence that these men really understand how it works.”

What is really at stake when we talk about re -educating the country is our future pipeline for new technologies. The group of technologies arising from universities and emerging companies in energy production and storage, materials, computing, and biomedics were not richer. Meanwhile, artificial intelligence and advanced robots can soon transform our ability to manufacture these technologies and products.

The danger is that policy options with a backward appearance directed towards an era of manufacturing can destroy this promising progress.