A new Democrat report warns that manufacturing investment in the United States could fall by nearly $490 billion by 2029 due to President Donald Trump’s trade policies. The Joint Economic Committee Minority claimed that tariff-related uncertainty could cause businesses to delay building factories, buying advanced equipment, or funding research and development. The report projects that reduced investment could weaken supply chains, cut factory jobs, and harm U.S. competitiveness against China.
“Strengthening American manufacturing is critical to the future of our economy and our national security,” said Sen. Maggie Hassan (D-NH). She argued that “the chaos and uncertainty created by his tariffs has placed a burden on American manufacturers that could weigh our country down for years to come.” Democrats drew parallels between U.S. tariff policy and the U.K.’s post-Brexit slowdown, citing studies that showed lower GDP growth tied to investment pullbacks.
The analysis relies on long-term data from the Congressional Budget Office and Bank of England research, claiming trade instability could slash U.S. manufacturing investment by 13% annually. Even if tariffs were lifted immediately, the committee said damage would linger, with April’s disruptions alone possibly cutting $42.2 billion in future investment.
Manufacturers face long planning horizons, and Democrats argue Trump’s policies create too much unpredictability. But Republicans and many industry leaders point out that tariffs have pressured China, reshored supply chains, and protected national security. The debate now centers on whether short-term uncertainty outweighs long-term gains. As Hassan put it, “Strengthening American manufacturing is critical to the future of our economy and our national security.”
