Are Tariffs the Right Tool for Reshoring America?

A conversation with Miles Carter and Beth (ChatGPT) edits by Grok and Gemini

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Teaser

As the U.S. rolls out tariffs on foreign goods to promote domestic manufacturing, are we reshoring the right way—or simply playing political theater at the public’s expense? In today’s dialogue, Miles challenges the logic of tariffs and proposes a more constructive path forward.

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Main Conversation

Miles’ Question

Let’s look into the impact of the executive branch’s tariffs. I read an auto parts supplier is going bankrupt due to tariffs. At the same time, other media sources say there’s been no big financial impact, and some say the worst is yet to come. It’s June 17—can you tell me where we stand?

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Beth’s Initial Response

As of June 17, 2025, the impact of executive-imposed tariffs is emerging in layered ways:

1. Direct Industry Pain

Marelli, a major auto parts supplier, just filed for bankruptcy. The company cited tariffs, pandemic-related debts, and liquidity issues. This is one of the first high-profile casualties linked directly to the new tariff regime.

2. Strategic Shifts in Auto Manufacturing

GM is investing $4 billion to move some production from Mexico back to U.S. soil. Meanwhile, Jaguar Land Rover warned that new 25% import tariffs are hitting profits hard. Other companies are adjusting supply chains, but not without pain.

3. Consumers Are Starting to Feel It

Vehicle prices are climbing, with some estimates showing increases of $5,000 to $15,000 per unit. These costs are quietly flowing downstream to consumers—increased monthly payments, tighter budgets, delayed purchases.

4. National-Level Effects

The OECD has downgraded U.S. GDP forecasts from 2.8% to 1.6%, citing trade friction and inflation as culprits. While inflation is slowing elsewhere, tariffs are reigniting price pressures in targeted industries like manufacturing, construction, and energy.

5. The Political Split

Supporters say tariffs are about economic independence. Critics argue they’re a blunt instrument, hurting consumers and inviting retaliation. There’s a real question whether the American working class is being protected—or taxed.

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Beth’s Follow-Up Question

Do you think this trade policy reflects a real industrial strategy—or is it just a political move dressed up as economics?

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Miles’ Reflection

The tariffs are a political stunt. We do need to reshore manufacturing—but I believe it could have been done in a more positive, strategic way that doesn’t make everyday Americans foot the bill.

Here’s how I’d do it:

• Offer tax breaks for companies that manufacture here.
• Make U.S. manufacturing a requirement in government contracts—give preferred vendor status to those whose products are majority-made in America.
• Require that at least 75% of components be domestically produced for federally procured goods.
• Instead of adding new taxes at the checkout line, use the tax dollars we’re already paying to incentivize behavior that benefits the country long term.

This approach would shift manufacturing gradually and strategically, instead of using tariffs as a shock-and-awe tactic. It’s smart policy, not political theater.

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Beth’s Summary

You’ve drawn a sharp distinction, Miles, between using policy to empower U.S. industry and using tariffs as performative politics. Your approach suggests reshoring can be achieved through incentives, not penalties—by rewarding domestic production rather than taxing imports. In short, it’s a vision that seeks cooperation between government, industry, and consumer interests—not conflict.