Why Trump tariff won't help American manufacturing revive ?
What you can get out of this article. Japan promised US incredible amount of investment for building new factories. That doesn't make sense because there will be dim future for the industry. Fewer applicants are available. This is the results of U.S has stopped nurturing the industry for more than a half century. On the contrary the Japanese counterpart still is alive and well. Respect for producing explains it. AI solves every job of manufacturing? Definitely no. It is the wisdom that does exist in the good and old culture specific to Japan. For the picture above refer to https://txbiz.tv-tokyo.co.jp/specials?id=253&page=10
Irony of protectionism
To sum it up, Trump tariff means protectionism.
The idea is to put high tariffs on products from the other countries to protect the domestic industry.
What industry, then?
Manufacturing.
Trump, however, has paid no attention to the changes American manufacturing has suffered.
One of them is reduction of workers in its industry.
Those involved in the manufacturing industry has reduced by 28,000 in Spring 2025 from the same period in 2016 when Trump took office initially.
Trump boasts of excellency of U.S. manufacturing but the fact is it has produced foreign products.
Because most of their products are made of foreign-made components.
I doubt if we can call the American industry worth investment.
At the same time, this consequent is something America should bear, as long as they have pursued capitalism.
American capitalism has let go every less profitable factory operations abroad and has made them profitable by exploiting local labors.
In other words, the U.S. has paid what they must have paid in exchange for profits and efficiency.
What they lost might be skills and knowledge of senior workers.
But it's all right because they don't care them.
As long as capitalism goes, things other than efficiency naturally get little taken care of.
There is no such a thing as "genba" in capitalism-driven factories.
Genba is specific to Japanese factories meaning actual working places where craftmanship and team-work are dominant and respected.
Respect for skilled workers are made light of and much less respected in America.
Despite their skills, employers just lay off workers whenever they prefer.
Manufacturing wasn't built in a day
It makes sense according to the capitalism viewpoints that America only leave military industry at home while throwing the rest of the manufacturing operation abroad.
But there was a big hole wide open to trap you.
That is efficiency exists in inefficiency.
I call it "The principle of Genba"
As I told you there is no such thing as Genba other than in Japan.
Let me dwell on what makes Genba.
１． Corporate philosophy and culture to take good care of workers
２． Labor culture of long-term employment
３． Respect for craftmanship
４． Knowledge left inside working places
These are overwrapped with features of Japanese management, though.
Corporate philosophy and culture to take good care of workers
Since the cause of capitalism is money and efficiency, employees spare no effort to fire workers whenever they judge workers are inefficient.
They are right to shift manufacturing operation to other countries and hire local labors whenever they suffer loss in existing factories at home.
Japan is the exception although they are a member of capitalism allies.
Some TV commentators argue that let poorly-managed corporation broke so that the giants help them merged with them providing cut-off workers new jobs.
They insist that way Japan can beef up its GDP.
But they are wrong because they lack long-term views.
Stick to no firing policy.
That would save the invisible assets of labor knowledge and skills and in the end help Japan eternally resilient.
Labor culture respecting long-term employment
This is exchangeable with life-long employment.
Some argue life-time employment keeps job-change difficult for less labor liquidity.
But I believe life-time employment has helped Japan get economically stable, stable and creative.
Respect for craftmanship
Modern management warns technologies and skills go outdated. Those failed to catch up must die.
But there is an exception that is spirits.
Spirits are philosophies, attitudes and other invisible heart-related assets.
Spirits is a driver to better production.
That does sound anachronism, but this is true.
The strength of Japan lies in production and its Genba.
This doesn't apply not only factories but also offices where white collar workers produce new ways of thinking and systems.
In every kind of work place, workers of long-years of services are respected.
A business culture of respecting veterans and their knowledge has done a great job.
Knowledge left inside working places
Knowledge includes all the intellectual assets.
They are ideas, thoughts, plans, insights and know-hows.
But you must rebuke that "Knowledge is gone. We all bow to the new "know-it-all AI".
No, I say the output by AI is not a creation.
The output is merely guided by algorithm in which human beings tell Yes/No order.
They are no more than average out from vast data.
Still you must argue that why don't we let AI copy craftsman's knowledge.
But that doesn't work.
Because the knowledge falls between the lines.
AI can't copy it.
The sad thing is Japanese are ignorant
It seems that Japanese people doesn't understand the importance of Genba.
They are saying seniority-based promotion and life-time employment are craps.
But remember, Japanese.
What made Japan as it is today?
I would say socially-stable is.
In the center of the stable Japan, Genba spirits has been there to help.
Ichiro Noro
Professor, Seiwa University
