Over the past few decades, Japan-based automaker Toyota has spent billions of dollars to expand its manufacturing and assembly plants in the United States. Those plants now employ over 64,000 people across North America and have churned out millions of vehicles.
For politicians who fetishize blue-collar work, this ought to be tremendous news. Indeed, it also illustrates one of the underappreciated aspects of globalization and free trade: The flow of capital and goods often gets blamed for the outsourcing of American jobs overseas, but it also means the creation of jobs in America that are backed by investments from foreign firms.
Now, however, the Trump administration seems to be trying to undo that. With a series of short-sighted tariff maneuvers, the president has effectively told Toyota (and other Japanese carmakers) that it should do more of its manufacturing in Japan and stop trying to create jobs in America.
