[1] https://www.koco.com/article/manufacturing-jobs-us-tariffs/7...
The trade deficit is shrinking, and which necessarily means there is more domestic flow as foreign hoards of dollars are liquidated. That flow has to go somewhere.
Could be straight to the tax cuts of course.
You are correct. Of course, if new output is automated, then the purported goal of the tariffs (more manufacturing jobs!) is defeated.
The fact that any new manufacturing will of course be automated shows how little thought went into designing these tariffs and how transparently false the administration's promises are.
> The trade deficit is shrinking
This is totally irrelevant. The size of the trade deficit does is a red herring.
Because factory machines and raw materials are being tariffed. Also because a source of cheap labor (immigrants) is being excised.
> Actually increasing manufacturing capacity first requires construction and capital expenditure.
It certainly does. And companies are rightfully hesitant to invest, because the legally dubious basis for the tariffs may not survive this month, much less into the next administration.
Yet history teaches us that the sort of people this administration consists of never relinquish power without a fight.
