Can tariffs really pull manufacturing back to the U.S.?

Bringing jobs back to America sounds appealing, but the reality is complex. Many U.S. manufacturers rely on imported components, and higher tariffs raise production costs, hurting competitiveness.  

For example, the automotive industry contributes 3 percent to U.S. GDP and depends on global supply chains. The Ford F-150 is assembled in Michigan and Missouri, but only 45 percent of its parts are made in the U.S. or Canada. High tariffs increase costs and force companies to adjust, leading to significant losses.  

As Jeffrey J. Schott from the Peterson Institute explains, permanent tariffs would need subsidies to keep companies afloat, but this is costly and politically difficult, especially with budget deficits.