OPINION: President Donald Trump’s tariffs have caused global controversy. Whether you view them as good, bad or with uncertainty, you have likely heard of the ongoing discussions surrounding them. Despite disagreements with this approach to international trade, it’s worth looking at the results.
There are a few ways to examine the implementation of these tariffs. President Trump has a track record of using tariffs as a negotiation and macroeconomic tool.
According to the Atlantic Council, “The Trump administration also, more conventionally, wields tariffs in support of a wide range of macroeconomic goals: Protecting domestic industries, such as steel, from unfair trading practices and encouraging domestic manufacturing. Decreasing US trade deficits. Increasing revenue from duties. Of course, the ‘Catch-22’ is that if reshoring is successful, the United States will not be able to increase revenue from import duties.”
On Oct. 28, President Trump had a meeting with Japan’s first female Prime Minister, Sanae Takaichi, during which they discussed her plan to invest $10 billion in U.S. Toyota manufacturing plants over the next five years.
According to Toyota Newsroom, “Toyota’s U.S. manufacturing presence is expanding again to meet growing demand for hybrid vehicles. As a part of Toyota’s recent commitment to invest up to $10 billion in the U.S. over the next five years, the company announces a $912 million investment and 252 new jobs across five manufacturing plants to increase hybrid capacity and bring hybrid-electric Corollas to its production lineup.”
This investment in Toyota’s plants in W. Va., Ky., Miss., Tenn. and Mo. demonstrates the company’s continued dedication to reinvesting profits in its U.S. operations, which is a win for us as it will benefit Americans who drive a Toyota.
Whether you support tariffs and President Trump’s methods in international relations or not, they’re effective. Although people are worried about foreign direct investment leaving the country, this isn’t the case, it’s quite the contrary.
Hyundai also recently announced a commitment to U.S. growth with a $21 billion investment plan.
According to Hyundai, “The Group is to invest a total of USD 21 billion in the U.S. from 2025 to 2028. USD 9 billion to expand U.S. automobile production to 1.2 million units annually. USD 6 billion to enhance parts, logistics and steel business, increasing the localization of auto parts and strengthening supply chains. USD 6 billion to expand future industries and strengthen external partnerships and energy infrastructure, including EV charging. Investment is expected to create more than 100,000 direct and indirect job opportunities by 2028, including 14,000 direct full-time jobs.”
Other companies like BM, Apple and TSMC, have all recently committed to invest hundreds of billions of dollars back into the U.S. in the coming years.
Unfortunately, these company announcements of equally important investments didn’t receive as much media attention but should be moving forward.
While these investments may not receive as much attention as Toyota did, their impact will be significant. They will lead to increased industrialization, a larger workforce, reduced costs and ultimately contribute to a better America. President Trump’s tariffs, when used in conjunction with his strategic negotiation efforts, are a powerful tool that benefits all parties, especially our great nation.
