2025: President Trump's Economic Policy - daiamondfox @ ウィキ【11/4更新】

Trump’s Economic Policies and the Revival of American Manufacturing

💲Table of Contents

The Historical and Economic Importance of Manufacturing

American manufacturing is the backbone of the economy and has historically underpinned the nation’s strength.

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In the Civil War, the North’s industrial power (economic, industrial, and logistical advantages) was key to victory[1]. During World War II, Detroit’s auto factories retooled for military production, mass-producing B-24 bombers, Jeeps, and tanks to contribute to the Allied victory[2].

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These examples demonstrate how manufacturing creates jobs, drives innovation, and strengthens national security.

Today, manufacturing accounts for 10% of U.S. GDP, contributing $2.93 trillion in Q3 2024, with every dollar invested generating $2.69 in economic activity. It provides over 13 million jobs with average salaries exceeding $100,000, and accounts for 55% of patents and 54%($326 billion) of domestic R&D[3].

Tariff Policies as a Strategy for Manufacturing Revival

Against this backdrop of manufacturing’s importance, President Trump’s tariff policies represent a strategic move aimed at reviving American manufacturing (reshoring)[4]. At their core, these policies impose tariffs on imports to curb offshoring and encourage domestic production.

For instance, 145% tariffs on Chinese goods (later eased to 30%) and threats of 25% on Mexican and Canadian products[5] aim to reduce trade deficits and protect national security.

The U.S.-China trade deficit from 2001-2018 resulted in 3.7 million lost jobs in the U.S.[6], but tariffs address such imbalances, prompting companies to invest domestically.

As a result, investments like Apple’s $500 billion, Eli Lilly’s $27 billion in new factories, and TSMC’s $100 billion in semiconductor plants have emerged[4]. While disrupting friend-shoring (e.g., to India) and near-shoring (e.g., to Mexico), these policies rebuild a domestic industrial ecosystem.

46.5%

In China, the 2024 FDI net outflow of $168 billion (a 99% plunge over three years) and youth unemployment (official 19.7%, estimated 46.5%) reflect the impact of trade wars[7][8].

Benefits of Tax Cut Policies and Support for Manufacturing

On the other hand, President Trump’s tax cut policies serve as another pillar supporting manufacturing revival, delivering clear benefits. The 2017 tax reform reduced the top rate from 42% to 37% and corporate taxes from 35% to 21%, but contrary to predictions of revenue loss, revenues increased[9].

According to the Congressional Budget Office, post-reform revenues over 10 years exceeded projections by $570 billion, with corporate revenues largely unchanged, spurring investment surges (9.4% in business, 14.2% in corporations) and income growth (median household increase of $5,000 over two years)[9].

The top 1%‘s tax burden rose from 40% to 46%, showing the inverse correlation where lower rates increase wealthy contributions[10]. In 2025’s fiscal year, tariffs boosted revenues by $118 billion, capping the deficit at $1.8 trillion[11].

These policies also contributed to lower inflation (wholesale prices down 0.5%)[12], enhancing manufacturing competitiveness.

Integrated Effects of Policies and Future Outlook

Overall, Trump’s tariffs and tax cuts work in tandem to revive manufacturing, promoting economic growth, job stability, and innovation. Challenges (the complexity of reshoring) exist[4], but historical lessons show that a robust manufacturing sector is key to securing U.S. superiority.

References

[1] “What advantages did the north have in the civil war?” (Civil War.net, December 15, 2024) - https://www.civil-war.net/what-advantages-did-the-north-have-in-the-civil-war/
[2] “How Detroit Factories Retooled During WWII to Defeat Hitler” (History.com, March 19, 2020) - https://www.history.com/articles/wwii-detroit-auto-factories-retooled-homefront
[3] “Manufacturing in America – Contributing to Our Economy, Employment, and Innovation” (NIST, March 4, 2025) - https://www.nist.gov/blogs/manufacturing-innovation-blog/manufacturing-america-contributing-our-economy-employment-and
[4]“Trump’s Tariff Plan: A Strategic Move to Reshore Manufacturing” (Industry Week, March 11, 2025) - https://www.industryweek.com/the-economy/public-policy/article/55273536/trumps-tariff-plan-a-strategic-move-to-reshore-manufacturing
[5]“Investors, lawmakers call for crackdown on IP theft amid China trade war” (Fox Baltimore, April 11, 2025) - https://foxbaltimore.com/news/nation-world/investors-lawmakers-call-for-crackdown-on-ip-theft-amid-china-trade-war-intellectual-property-tariffs-retaliatory-kevin-oleary-thom-tillis-investors-markets-hackers-espionage
[6] “California, Texas Among Biggest Losers of Jobs From Growing China Trade Deficit” (U.S. News & World Report, Jan. 30, 2020) - https://www.usnews.com/news/best-states/articles/2020-01-30/us-loses-37-million-jobs-due-to-growing-china-trade-deficit-report-finds
[7] “China Records $168 Billion FDI Outflow in 2024, Marking 99% Plunge Over Three Years: SAFE Data” (DeepNewz, Feb 17, 2025) - https://deepnewz.com/china/china-records-168-billion-fdi-outflow-2024-marking-99-plunge-over-three-years-d73571e2
[8]“Chinese professor says youth jobless rate might have hit 46.5%” (Economic Times, Jul 20, 2023) - https://economictimes.indiatimes.com/news/international/business/chinese-professor-says-youth-jobless-rate-might-have-hit-46-5/articleshow/101979377.cms
[9] “The numbers are in: Trump’s tax cuts paid off” (Washington Examiner, June 03, 2022) - https://web.archive.org/web/20220603104609/https://www.washingtonexaminer.com/restoring-america/faith-freedom-self-reliance/the-numbers-are-in-trumps-tax-cuts-paid-off
[10] “Data prove it: The Trump tax cuts soaked the rich” (New York Post, Feb. 29, 2024) - https://nypost.com/2024/02/29/us-news/data-prove-it-the-trump-tax-cuts-soaked-the-rich/
[11]“Uncle Sam ends fiscal year 2025 $1.8 trillion in the red” (The Washington Times, October 8, 2025) - https://www.washingtontimes.com/news/2025/oct/8/uncle-sam-ends-fiscal-year-2025-18-trillion-red/
[12] “Wholesale Inflation Declined by 0.5% in April” (Newsmax, 15 May 2025) - https://www.newsmax.com/finance/streettalk/producer-wholesale-inflation/2025/05/15/id/1211059/