Goldman Sachs warns tariffs won’t help the U.S. boost manufacturing productivity as tech in American factories continues to lag

• U.S. manufacturing has decelerated recently, both as a result of increased competition from China and as part of a broader manufacturing productivity slowdown. Goldman Sachs analysts argue tariffs will not lower supply chain and labor costs enough to boost reshoring, and instead, increased automation will be the most likely driver of a manufacturing productivity boost.

As China continues to best the United States in manufacturing capabilities, tariffs may not be America’s best bet to boost factory productivity.