Latest news with #factoryjobs
Arab News
08-07-2025
- Business
- Arab News
Trump's previous tariff push terrified the world economy. He's betting this time is different
WASHINGTON: When President Donald Trump last rolled out tariffs this high, financial markets quaked, consumer confidence crashed and his popularity plunged. Only three months later, he's betting this time is different. In his new round of tariffs being announced this week, Trump is essentially tethering the entire world economy to his instinctual belief that import taxes will deliver factory jobs and stronger growth in the US, rather than the inflation and slowdown predicted by many economists. On Tuesday, he told his Cabinet that past presidents who hadn't aggressively deployed tariffs were 'stupid.' Ever the salesman, Trump added that it was 'too time-consuming' to try to negotiate trade deals with the rest of the world, so it was just easier to send them letters, as he's doing this week, that list the tariff rates on their goods. The letters marked a change from his self-proclaimed April 2 'Liberation Day' event at the White House, where he had posterboards with the rates displayed, a choice that led to a brief market meltdown and the 90-day negotiating period with baseline 10 percent tariffs that will end Wednesday. Trump, instead, chose to send form letters with random capitalizations and punctuation and other formatting issues. 'It's a better way,' Trump said of his letters. 'It's a more powerful way. And we send them a letter. You read the letter. I think it was well crafted. And, mostly it's just a little number in there: You'll pay 25 percent, 35 percent. We have some of at 60, 70.' When Trump said those words, he had yet to issue a letter with a tariff rate higher than 40 percent, which he levied Monday on Laos and Myanmar. He plans to put 25 percent tariffs on Japan and South Korea, two major trading partners and allies deemed crucial for curbing China's economic influence. Leaders of the 14 countries tariffed so far hope to negotiate over the next three weeks before the higher rates are charged on imports. 'I would say that every case I'm treating them better than they treated us over the years,' Trump said. Three possible outcomes His approach is at odds with how major trade agreements have been produced over the last half-century, detailed sessions that could sometimes take years to solve complex differences between nations. There are three possible outcomes to this political and economic wager, each of which could drastically reshape international affairs and Trump's legacy. Trump could prove most economic experts wrong and the tariffs could deliver growth as promised. Or he could retreat again on tariffs before their Aug. 1 start in a repeat of the 'Trump Always Chickens Out' phenomenon, also known as TACO. Or he could damage the economy in ways that could boomerang against the communities that helped return him to the White House last year, as well as hurt countries that are put at a financial disadvantage by the tariffs. Sen. Ron Wyden, D-Oregon, said Trump's letters had 'extended his tariff purgatory for another month,' essentially freezing in place the US economy as CEOs, foreign leaders and consumers are unclear of Trump's actual strategy on foreign trade. 'The TACO negotiating tactic pioneered by Trump is making his threats less and less credible and reducing our trading partners' willingness to even meet us halfway,' Wyden said. 'There's no sign that he's any closer to striking durable trade deals that would actually help American workers and businesses.' So far, the stock and bond markets are relatively calm, with the S&P 500 stock index essentially flat Tuesday after a Monday decline. Trump is coming off a legislative win with his multitrillion-dollar income tax cuts. And he's confidently levying tariffs at levels that previously rocked global markets, buoyed by the fact that inflation has eased so far instead of accelerating as many economists and Democratic rivals had warned. 'By floating tariffs as high as 40 percent to even 100 percent, the administration has 'normalized' the 25 percent tariff hikes — yet this is still one of the most aggressive and disruptive tariff moves in modern history,' said Wendong Zhang, an economist at Cornell University. 'This gradual unveiling, paradoxically, risks normalizing what would otherwise be considered exceptionally large tariff hikes.' Others simply see Trump as a source of nonstop chaos, with the letters and their somewhat random tariff rates showing the absence of a genuine policy process inside his administration. 'It's really just a validation that this policy is all over the place, that they're running this by the seat of their pants, that there is no real strategy,' said Desmond Lachman, a senior fellow at the American Enterprise Institute, a right-leaning think tank. Questions about how much money tariffs will generate With Trump's 90-day tariff negotiation period ending, he has so far sent letters to 14 countries that place taxes on imported goods ranging from 25 percent to 40 percent. He said he would sign an order Tuesday to place 50 percent tariffs on copper and said at the Cabinet meeting that at some point pharmaceutical drugs could face tariffs of as much as 200 percent. All of that is on top of his existing 50 percent tariffs on steel and aluminum, 25 percent tariffs on autos and his separate import taxes on Canada, Mexico and China. 'The obvious inference is that markets for now are somewhat skeptical that Trump will go through with it, or alternatively they think compromises will be reached,' said Ben May, a director of global economic research at the consultancy Oxford Economics. 'That's probably the key element.' May said the tariffs are likely to reduce the growth in US household incomes, but not cause those incomes to shrink outright. Trump has said his tariffs would close US trade imbalances, though it's unclear why he would target nations such as Tunisia that do relatively little trade with America. Administration officials say trillions of dollars in tariff revenues over the next decade would help offset the revenue losses from the continuation and expansion of his 2017 tax cuts that were signed into law Friday. The federal government has collected $98.2 billion in tariff revenues so far this year, more than double what it collected last year, according to the Bipartisan Policy Center. At Tuesday's Cabinet meeting, Treasury Secretary Scott Bessent said the tariff revenues could be 'well over $300 billion by the end of the year.' Bessent added that 'we don't agree' with the Congressional Budget Office estimate that tariffs would bring in $2.8 trillion over 10 years, 'which we think is probably low.' The governments of Japan, South Korea, Malaysia, Myanmar, Thailand, Cambodia and South Africa have each said they hope for further negotiations on tariffs with Trump, though it's unclear how that's possible as Trump has said it would be too 'complicated' to hold all those meetings. Instead on Tuesday, Trump posted on social media that the tariffs would be charged as scheduled starting Aug. 1. 'There has been no change to this date, and there will be no change,' Trump said on Truth Social. 'No extensions will be granted. Thank you for your attention to this matter!'
CTV News
08-07-2025
- Business
- CTV News
Trump's previous tariffs terrified the world economy. He's betting this time is different
WASHINGTON — When U.S. President Donald Trump last rolled out tariffs this high, financial markets quaked, consumer confidence crashed and his popularity plunged. Only three months later, he's betting this time is different. In his new round of tariffs being announced this week, Trump is essentially tethering the entire world economy to his instinctual belief that import taxes will deliver factory jobs and stronger growth in the U.S., rather than the inflation and slowdown predicted by many economists. On Tuesday, he told his Cabinet that past presidents who hadn't aggressively deployed tariffs were 'stupid.' Ever the salesman, Trump added that it was 'too time-consuming' to try to negotiate trade deals with the rest of the world, so it was just easier to send them letters, as he's doing this week, that list the tariff rates on their goods. The letters marked a change from his self-proclaimed April 2 'Liberation Day' event at the White House, where he had posterboards with the rates displayed, a choice that led to a brief market meltdown and the 90-day negotiating period with baseline 10% tariffs that will end Wednesday. Trump, instead, chose to send form letters with random capitalizations and punctuation and other formatting issues. 'It's a better way,' Trump said of his letters. 'It's a more powerful way. And we send them a letter. You read the letter. I think it was well crafted. And, mostly it's just a little number in there: You'll pay 25%, 35%. We have some of at 60, 70.' When Trump said those words, he had yet to issue a letter with a tariff rate higher than 40%, which he levied Monday on Laos and Myanmar. He plans to put 25% tariffs on Japan and South Korea, two major trading partners and allies deemed crucial for curbing China's economic influence. Leaders of the 14 countries tariffed so far hope to negotiate over the next three weeks before the higher rates are charged on imports. 'I would say that every case I'm treating them better than they treated us over the years,' Trump said. Three possible outcomes His approach is at odds with how major trade agreements have been produced over the last half-century, detailed sessions that could sometimes take years to solve complex differences between nations. There are three possible outcomes to this political and economic wager, each of which could drastically reshape international affairs and Trump's legacy. Trump could prove most economic experts wrong and the tariffs could deliver growth as promised. Or he could retreat again on tariffs before their Aug. 1 start in a repeat of the 'Trump Always Chickens Out' phenomenon, also known as TACO. Or he could damage the economy in ways that could boomerang against the communities that helped return him to the White House last year, as well as hurt countries that are put at a financial disadvantage by the tariffs. Sen. Ron Wyden, D-Ore., said Trump's letters had 'extended his tariff purgatory for another month,' essentially freezing in place the U.S. economy as CEOs, foreign leaders and consumers are unclear of Trump's actual strategy on foreign trade. 'The TACO negotiating tactic pioneered by Trump is making his threats less and less credible and reducing our trading partners' willingness to even meet us halfway,' Wyden said. 'There's no sign that he's any closer to striking durable trade deals that would actually help American workers and businesses.' So far, the stock and bond markets are relatively calm, with the S&P 500 stock index essentially flat Tuesday after a Monday decline. Trump is coming off a legislative win with his multitrillion-dollar income tax cuts. And he's confidently levying tariffs at levels that previously rocked global markets, buoyed by the fact that inflation has eased so far instead of accelerating as many economists and Democratic rivals had warned. 'By floating tariffs as high as 40% to even 100%, the administration has 'normalized' the 25% tariff hikes — yet this is still one of the most aggressive and disruptive tariff moves in modern history," said Wendong Zhang, an economist at Cornell University. 'This gradual unveiling, paradoxically, risks normalizing what would otherwise be considered exceptionally large tariff hikes.' Questions about how much money tariffs will generate With Trump's 90-day tariff negotiation period ending, he has so far sent letters to 14 countries that place taxes on imported goods ranging from 25% to 40%. He said he would sign an order Tuesday to place 50% tariffs on copper and said at the Cabinet meeting that at some point pharmaceutical drugs could face tariffs of as much as 200%. All of that is on top of his existing 50% tariffs on steel and aluminum, 25% tariffs on autos and his separate import taxes on Canada, Mexico and China. 'The obvious inference is that markets for now are somewhat skeptical that Trump will go through with it, or alternatively they think compromises will be reached,' said Ben May, a director of global economic research at the consultancy Oxford Economics. 'That's probably the key element.' May said the tariffs are likely to reduce the growth in U.S. household incomes, but not cause those incomes to shrink outright. Trump has said his tariffs would close U.S. trade imbalances, though it's unclear why he would target nations such as Tunisia that do relatively little trade with America. Administration officials say trillions of dollars in tariff revenues over the next decade would help offset the revenue losses from the continuation and expansion of his 2017 tax cuts that were signed into law Friday. The federal government has collected US$98.2 billion in tariff revenues so far this year, more than double what it collected last year, according to the Bipartisan Policy Center. At Tuesday's Cabinet meeting, Treasury Secretary Scott Bessent said the tariff revenues could be 'well over $300 billion by the end of the year.' Bessent added that 'we don't agree' with the Congressional Budget Office estimate that tariffs would bring in $2.8 trillion over 10 years, 'which we think is probably low.' The governments of Japan, South Korea, Malaysia, Myanmar, Thailand, Cambodia and South Africa have each said they hope for further negotiations on tariffs with Trump, though it's unclear how that's possible as Trump has said it would be too 'complicated' to hold all those meetings. Instead on Tuesday, Trump posted on social media that the tariffs would be charged as scheduled starting Aug. 1. 'There has been no change to this date, and there will be no change,' Trump said on Truth Social. 'No extensions will be granted. Thank you for your attention to this matter!' Josh Boak, The Associated Press
Forbes
10-05-2025
- Business
- Forbes
Are Factory Jobs Making A Comeback? Some Offering Over $80K A Year
There's a lot of talk about the resurgence of factory manufacturing work. Could it be your next new ... More dream job? According to the White House, manufacturing jobs are roaring back under President Trump. The report says the rebound in manufacturing jobs was led by the automobile sector, which gained 8,900 new jobs in February, 2025—after losing 27,300 auto jobs in 2024. Trump insists that the new administration will supercharge the country's domestic base. The truth is there's a cultural nostalgia around factory jobs, known as 'smokestack nostalgia"--a time when Americans worked in good solid jobs for generations. But is it a dream or delusion that factory jobs are making a resurgence? U.S. Secretary of Commerce Howard Lutnick says factory gigs are the 'great jobs of the future' for Gen Z amid the administration's efforts to fuel a multi-generational manufacturing boom. But not if Gen Zers have anything to do with it, according to Mike Goetsch, head of product at Soter. The problem is that Gen Z isn't interested in factory work, he says because they believe they're low-paying, dead-end jobs. The typical Gen Zer is looking for micro-shifts or flexible gig jobs that provide free time and work-life balance. Factory jobs have gotten a bum rap among Gen Z, partly because they have misleading, dinosaur images of what's involved in manufacturing jobs. A 2023 Soter report finds only 14% of Gen Z say they'd consider industrial work as a career path. A college degree used to be a ticket to stability, but not anymore. More business leaders are saying, "Ditch the 4-year degree." And tech workers are facing layoffs, slower wage growth and the quiet disappearance of roles as AI redefines the white-collar landscape. Experts declare what was once a clear path is now a moving target, demanding constant reinvention. Some say it's a temporary shakeup due to the pandemic, inflation or corporate efficiency efforts. But others envision a deeper shift underway, and see it as a make-it or break-it moment for employers in the manufacturing sector who need to step up. In the Suter report, 38% of Gen Zers say they don't know what industrial workers do, indicating a clear lack of education around industrial work. Goetsch says that's why it's not surprising that a measly 14% of Gen Zers would consider industrial work. Although 26% of Gen Z thinks industrial work is a good short-term job, they don't see it as a long-term option. 'It's clear the Secretary of Commerce's POV that factory jobs are great long-term career options is at odds with Gen Z's perspective,' Goetsch asserts. According to Goetsch, the Bureau of Labor Statistics reports that the average rate of manufacturing employee turnover is currently 39.9% (up from 30.6% in 2017). He states that this statistic is exacerbated by the fact that fewer young people are entering the industry, and a wave of baby boomers are retiring. Due to these labor concerns, he points out that manufacturers are increasing salaries to attract new talent, citing the Bureau of Economic Analysis and Bureau of Labor Statistics' average manufacturer hourly earnings $35.06, up 4.3% year-over-year. 'Within the manufacturing sector, there are other specialties outside production and operations positions like machine operators. For example, Environmental Health and Safety (EHS) professionals like EHS Engineers make an average salary of $83,342 per year or $40.07 per hour,' he explains. "The top 10% makes over $115,400 per year, which is an incredibly lucrative career path Gen Zers should consider. Part of the challenge is amplifying these opportunities and informing young people that these opportunities don't only exist but can be excellent paths for great salaries. According to the National Association of Manufacturers, there were 400,000 open jobs for factory workers in February 2025, and employers are having trouble filling those positions, even though factory jobs look very different today than in the 1950s. I asked Goetsch how leaders can attract Gen Z to some of the lucrative factory jobs, and he mentions the importance of cracking the myth. 'If employers don't adequately work to debunk some of the perceptions Gen Zers hold about industrial work at large," he told me, 'they risk disappearing their workforce, which could foil the administration's plans to revive the manufacturing sector.' He is convinced that one of the best ways to do that is to re-frame the narrative that these jobs aren't cutting-edge or tech-forward. 'A third (33%) of Gen Zers say they want to work for a company that is actively embracing new tech to help employees do their jobs,' Goetsch notes. 'While an emphasis on tech and automation might have been a perk or a non-issue to previous generations (or even a pain point for older generations), for Gen Z, it's a priority. However, only 18% of Gen Zers surveyed said they believe industrial work is embracing new technology.' Goetsch argues that the majority of industrial sectors have fallen far behind on tech and innovation, compared to their corporate counterparts, and Gen Zers know it. "While there has been recent interest in more cutting-edge tech in the industrial workplace, there is a need for more plentiful–and more strategic–investment in tech if industrial employers want to prioritize Gen Zers' job criteria," he insists. There is some good news along these lines. Myron Moser, chairman emeritus of Hartfiel Automation and business consultant Dhaval Jadav, are counseling their manufacturing clients to navigate the 'automation chasm' on how factories can recruit and manage expectations of younger workers, preparing them for a more automated future. Goetsch cites Soter as a great example of companies that can attract Gen Zers to factory jobs. 'We use AI and computer vision to help EHS professionals identify hazards, risks and violations on the factory floor within about 30 seconds, and with 99% accuracy,' he concludes. 'Gen Z, having grown up immersed in digital technology, is less inclined to tolerate manual processes. Faced with repetitive, outdated tasks, they are likely to not only lose patience but to write off the entire industry if it seems antiquated.'
