Manufacturers Say Trump Has Made Opening U.S. Factories Impossible

Trump has argued that tariffs are the best solution to closing the country’s trade deficits, which he has incorrectly likened to taxpayer-backed “subsidies” for other nations. He has claimed that without tariffs, the U.S. is transferring wealth to other countries while receiving nothing in exchange. He has also pitched that hiking tariffs on other nations would bring jobs and manufacturing opportunities back to American shores, but economists don’t agree with either point.

Instead, droves of financial and economic experts have insisted that tariffs on other nations will only serve to harm America and its markets, making products more expensive stateside and making American consumers less likely to spend their money (something that Trump doesn’t seem to have any problem with, actually). The Harvard Kennedy Business School even floated in April that America’s trade deficit basically doesn’t matter, writing that “Americans earn more from, or earn just about as much from, their total investments abroad as foreigners earn in the United States.”

“So if you look historically, we have felt no additional pressure about sustainability of our position,” the school wrote in an early stage tariff explainer. “As long as we borrow the money and use it productively to increase investment in the United States, it is eminently sustainable, as with any investment.”