An Open Letter to the Trump Administration

I am writing to express deep concern over the ongoing trade war and the imposition of tariffs on key allies. While the stated goal of these measures—to rebuild domestic manufacturing—may seem appealing, the economic realities suggest a far different outcome. These tariffs are not only ineffective in reviving American manufacturing but are actively harming your economy, global standing, and long-term growth prospects.

 

The Reality of Tariffs: Who Really Pays?

Tariffs are, in essence, a tax on American businesses and consumers. While they are imposed on foreign goods, the burden is overwhelmingly borne by U.S. importers, retailers, and ultimately the end consumer. The result? Higher prices, reduced purchasing power, and unnecessary inflationary pressure on the economy.

 

Industries that rely on imported raw materials—such as steel, aluminum, and components for high-tech manufacturing—are already feeling the squeeze. Tariffs increase their costs, making them less competitive both domestically and internationally. Instead of revitalizing industry, these policies are driving U.S. manufacturers to cut jobs, delay investments, and relocate production to avoid any more punitive measures.

 

The Myth of Onshoring: Manufacturing Won't Return Overnight

The assumption that companies will respond to tariffs by pouring billions into new U.S. manufacturing plants is misguided. Modern manufacturing operates in a highly complex and globalized supply chain, where efficiency and cost-effectiveness are paramount. The idea that firms will abandon established, optimized production networks in favor of expensive, long-term capital investments in the U.S. is unrealistic.

 

Beyond costs, companies face a deeper issue: labour availability. The U.S. economy has transitioned away from a low-skilled, labour-intensive industrial base to one that is built on high-margin, innovation-driven sectors like technology, finance, healthcare, and advanced manufacturing. Unlike the industrial era of the past, today’s businesses require a highly skilled workforce, and retraining America’s labour force to meet those demands is a generational effort, not a policy switch.

 

America's Economic Strength: A Services and Innovation Powerhouse

The U.S. has moved past its Rust Belt-era economy for a reason. You are now the world’s leading service-based and technology-driven economy, excelling in areas that generate significantly higher value than traditional manufacturing. Financial services, software development, biotechnology, and artificial intelligence are sectors where the U.S. maintains a global competitive edge. Reversing this progress in pursuit of low-margin, labour-intensive industries would be an economic misstep.

 

Instead of pushing for outdated protectionist measures, you should be investing in policies that:

 

• Strengthen America’s high-tech manufacturing and R&D sectors, where you have a natural advantage.

 

• Support job training and education programs to transition workers into high-growth industries.

 

• Identify and protect “essential” industries like semi-conductors, pharmaceuticals, and defence related manufacturing and insulate those supply chains further

 

• Identify and focus on “real” and not imagined unfair trade practices and intellectual property theft from bad actors only, not your allies.

 

• Enhance global trade relationships that allow American businesses to expand rather than contract.

 

Tariffs are a blunt instrument that cause widespread economic damage while often failing to achieve their intended goals. A more forward-looking approach would focus on leveraging America’s strengths in services, innovation, and advanced manufacturing rather than forcing a return to an outdated economic model.

 

I urge the administration to reconsider its approach to trade policy, recognizing that America’s long-term prosperity and ultimately that of the global economy depends on open markets, smart investment, and policies that position the United States for the future, not a return to the past.