Tariffs are turning up the heat on major investments in America! Recent moves by former US leader Donald Trump, who imposed a 25 percent tariff on automobile and parts imports, were meant to boost domestic manufacturing—but the results have been anything but expected.
TSMC, the world’s largest chip maker, warned the US Department of Commerce that these tariffs could derail its $165 billion mega investment plan in Arizona. This ambitious project, which includes six fab factories, two packaging and testing factories, and one R&D center, is projected to drive $200 billion in economic growth. If the tariff battle continues, the plan might be canceled altogether. ⚠️
The auto industry is feeling the squeeze as well. The policy aimed at shifting global production to domestic soil has instead sparked a 20 percent reduction in jobs. Notably, the European automaker Stellantis temporarily laid off 900 workers across its five factories in America and has suspended operations in Canada and Mexico. 🚗💥
Moreover, a sweeping $1.9 trillion investment vision involving major players like Softbank, Apple, CMA, and Stellantis now faces major uncertainty. This unfolding economic drama is a stark reminder that even policies designed to foster growth can produce unforeseen ripple effects across industries.
Stay tuned as we follow these developments and explore how such trade policies continue to reshape the investment landscape and job market.
Reference(s):
cgtn.com
