Trump's Tariffs: Truth or Fiction?
President Trump’s tariff strategy, aimed at revitalizing American manufacturing, continues to spark debate across economic and political circles. While the intent is clear, the broader implications raise important questions about its alignment with long-term economic trends. Manufacturing in Decline The U.S. manufacturing sector has steadily shrunk over the past five decades, falling from 23% of GDP in 1970 to just 9.7% in early 2025. Job losses have followed suit, prompting concern among policymakers and workers alike. Yet this decline is not unique to the United States. Similar patterns are evident in Canada , Germany , and Japan . Structural Shifts in Mature Economies Economists point to a natural evolution in advanced economies: agriculture gives way to manufacturing, which in turn is overtaken by services. In the U.S., the service sector has expanded from 71.8% of GDP in 1997 to 83.7% in 2025, driving employment growth and contributing to a low unemployment rate of ...