The Sour Grade: US Manufacturing's Unmet Promise Despite Tariff Hikes

A diagnosis reveals US tariff hikes failed to bring manufacturing jobs back home. Despite increased tariffs, US manufacturing jobs continued to decline, and reliance on Chinese supply chains remained largely unchanged. Evan Smith of Altana notes policy goals diverged from actual supply chain flows, with imports from Vietnam, Mexico, Canada, and Malaysia rising while intermediate goods remain heavily sourced from China. Analysis suggests Chinese products are being processed or re-exported through third countries at higher costs, creating a more expensive but indirect supply chain. While US manufacturing production showed mixed results post-tariffs, job growth hasn't followed, with automation identified as a key factor. Smith cautions against expecting a return to 1920s assembly-line employment models.