The Insanity of Repeated Trade Policies: A Call for Change
It’s a well-worn adage, but it resonates deeply — true insanity is doing the same thing over and over and expecting different results.
The trade policies that have dominated the last few decades have not only failed to benefit this nation but have also adversely affected its workers and communities.
Two decades ago, The New York Times Editorial Board responded to the staggering trade deficit of January 2005, which stood at $58.3 billion, with an editorial titled “Dangerous Deficits.” Indeed, deficits can pose significant risks; former Federal Reserve Chairman Paul Volcker attributed the Great Recession to trade deficits.
The Times remarked in 2005: “At $58.3 billion, the U.S. trade deficit for January exceeded everyone’s worst expectations… The trade deficit is the single most important factor in measuring the extent to which the United States lives beyond its means.”
Fast forward to today, and our trade deficit has more than doubled, reaching an alarming $131.4 billion in January, according to recent data.
The ramifications of these policies are evident across the nation.
Since 1990, New York has seen a 59% decline in manufacturing employment, while Ohio has experienced a 35% drop. These job losses have had devastating effects on communities, as research indicates a correlation between the decline of manufacturing jobs and rising drug overdoses, with multiple studies confirming this troubling trend.
Yet, instead of addressing this crisis, many liberal commentators appear disinterested in reversing the tide. In fact, they often react with indignation at the mere suggestion that American industries could be revitalized. Chris Matthews, during a segment on MSNBC, expressed incredulity at the notion of increasing domestic lumber production, asking, “What are we going to do? Have more lumber made in the United States now!?” Well, yes, we should. Even President Donald J. Trump took steps to foster growth in American timber production through an executive order.
In a similar vein, CNN’s Nia Malika-Henderson posed the question, “Is it worth it to upend the global economy for HVAC jobs?” This suggests a prioritization of maintaining low-wage jobs abroad over the potential creation of higher-paying domestic positions.
The exodus of American manufacturing has left us struggling to produce essential goods, from ships to medications. This is not merely an economic issue; it poses a national security threat.
However, there is a silver lining — we are witnessing a resurgence in reshoring American industry. President Trump remains committed to his vision of Making America Wealthy Again.
- Guardian Bikes has announced the launch of the first large-scale bicycle frame manufacturing operation in the United States.
- Novartis plans to invest $23 billion to build and expand ten facilities in the U.S.
- Barry Callebaut, a chocolate manufacturer, is ramping up its production in the U.S.
- JSW Steel is set to add jobs at its steel plant in Ohio.
- BMW is considering increasing shifts to boost production at its South Carolina facility.
- Apple has announced a $500 billion investment in U.S. manufacturing and training.
- Nvidia will invest hundreds of billions of dollars over the next four years in U.S.-based manufacturing.
- Taiwan Semiconductor Manufacturing Company (TSMC) has announced a $100 billion investment in U.S. chip manufacturing.
- Eli Lilly and Company is investing $27 billion in domestic manufacturing.
- DAMAC Properties, based in the United Arab Emirates, plans a $20 billion investment in new U.S.-based data centers.
- CMA CGM, a global shipping giant from France, is investing $20 billion in U.S. shipping and logistics, creating 10,000 new jobs.
- ADQ and U.S.-based Energy Capital Partners have announced a $25 billion investment in U.S. data centers and energy infrastructure.
- South Korean automaker Hyundai plans to invest $20 billion, including $5.8 billion for a new steel plant in Louisiana, creating nearly 1,500 jobs.
- Merck is investing $8 billion in the U.S. after opening a new $1 billion manufacturing facility in North Carolina.
- Clarios has announced a $6 billion plan to expand domestic manufacturing.
- GE Aerospace will invest nearly $1 billion in manufacturing across 16 states, creating 5,000 new jobs.
- Stellantis is investing $5 billion in its U.S. manufacturing network, including reopening an Illinois plant.
- Schneider Electric is investing $700 million in U.S. energy infrastructure.
- GE Vernova is investing nearly $600 million in U.S. manufacturing over the next two years, creating over 1,500 new jobs.
- Diageo, a London-based company, is investing $415 million in a new manufacturing facility in Alabama.
- Eaton Corporation, based in Dublin, is investing $340 million in a new South Carolina facility for its three-phase transformers.
- Siemens, the German industrial giant, is investing $285 million in U.S. manufacturing and AI data centers, creating over 900 new skilled jobs.
- Paris Baguette is investing $160 million to establish a manufacturing plant in Texas.
- ABB, a Swiss company, is investing $120 million to expand production in Tennessee and Mississippi.
- Saica Group, a Spanish packaging maker, is building a new $110 million facility in Anderson, Indiana.
- Saint-Gobain, based in Paris, is opening a $40 million manufacturing facility in Wheatfield, New York.
- Sygene International from India is acquiring a $36.5 million biologics manufacturing facility in Baltimore.
- Asahi Group Holdings, a major Japanese beverage producer, is investing $35 million to enhance production at its Wisconsin plant.
- Honda is expected to manufacture its next-generation Civic hybrid model in Indiana.
- Nissan is considering moving some production back to the U.S.
- Rolls-Royce is set to shift production to the U.S. and expand its domestic workforce.
- Volkswagen is contemplating relocating production of its luxury Audi and Porsche brands to the U.S.
- Volvo is evaluating the possibility of expanding its U.S. production.
- LG is considering moving its refrigerator manufacturing from Mexico to Tennessee.
- Italian spirits group Campari is “assessing the opportunities to expand its production in the U.S.”
- Essity, a Swedish hygiene products manufacturer, is considering shifting production to the U.S.
- Compal Electronics from Taiwan is eyeing a U.S. expansion.
- Inventec, also from Taiwan, is expected to expand its manufacturing operations into Texas.
- LVMH, the French luxury conglomerate, is “seriously considering” expanding its U.S. production capabilities.
- Cra-Z-Art, the largest toymaker in the U.S., has announced plans to shift a substantial portion of its manufacturing back to the U.S.
- Prepac, a Canadian furniture manufacturer, is moving production from Canada to the U.S.
- Lear is exploring the possibility of relocating its production to the U.S.
- Half of Japanese companies indicate they plan to increase investments in America, largely in response to tariffs.
