To provide a balanced perspective following yesterday’s article, The five trillion dollar pie in the sky, I decided it would be wise to examine the other side of the story and determine if Trump genuinely has something worth celebrating. To summarise:
The stated goal of Trump’s tariffs is to encourage reshoring of manufacturing and boost domestic production by making imports more expensive. In theory, this could incentivise companies to invest in U.S.-based operations to avoid tariffs.
As it happens, several well-known non-U.S. companies have bowed to Trump, having either announced or signaled their intentions to relocate or expand their operations to the United States in response to Trump’s tariffs, aiming to reduce the burden of increased import costs and stay competitive in the U.S. market. These relocations are likely to have a severe – potentially catastrophic – impact on the countries losing these businesses. I’ve included the number of employees who might be affected, meaning those at risk of losing their jobs.
Honda (Japan)
Honda has decided to produce its next-generation Civic hybrid in Indiana, shifting production from Mexico to avoid potential tariffs on one of its top-selling models. This move was reported in March 2025.
The human cost: The 6,500 people employed by Honda in Mexico. There is also a plant in Canada but the number employed is hard to track down. Note that Honda currently has multiple plants in the U.S. with a workforce of 33,000.
Hyundai Motor, and sister company Kia (South Korea)
In late January Hyundai announced plans to further localise production in the U.S. to minimise tariff impacts, including manufacturing hybrid vehicles at its new factory in Georgia. Additionally, a $20 billion U.S. investment was announced in late March aligning with tariff-avoidance strategies.
The human cost: Exact number of employees is hard to track down, but estimates of world-wide number of employees is around 250,000 (which includes Hyundai and assorted subsidiary companies) with 54,000 already employed in the United States, and worldwide Kia has 52,000.
Rolls-Royce (United Kingdom)
In late March reports emerged that Rolls-Royce is planning to shift production to the U.S. to circumvent tariffs.
The human cost: There are 21,000 people employed by Rolls-Royce in the UK.
Samsung and LG Electronics (South Korea)
Both companies are considering relocating their plants from Mexico to the U.S. to avoid tariffs. Samsung is exploring adjustments to its manufacturing of refrigerators, potentially moving production to its Tennessee factory.
The human cost: Samsung employs 3,000 people in Mexico, and LG 6,700.
Compal Electronics (Taiwan)
This Taiwanese laptop manufacturer has been in discussions with several southern U.S. states, particularly Texas, about potential investments to expand into the U.S., with CEO Anthony Peter Bonadero mentioning this in January 2025.
The human cost: 36,400 people are employed worldwide, excluding the U.S.
Inventec (Taiwan)
This company, which produces AI servers using Nvidia chips, began evaluating U.S. locations for investment in January 2025, favouring Texas due to its proximity to Mexico and robust power infrastructure.
The human cost: Inventec employs 31,000 people worldwide. I cannot locate how many of these are already employed in their U.S. plant.
Volvo Cars (Sweden)
Volvo’s CEO indicated that the company “may move” some production to the U.S., depending on the specifics of tariff policies. That is all we know at this stage.
Essity (Sweden)
The Swedish hygiene and tissue maker stated on January that it could shift more production from Mexico and Canada to the U.S. if tariffs were introduced. It looks like the move might be on as tariffs certainly were introduced.
The human cost: 3,800 in Mexico and 300 in Canada.
Volkswagen (Germany)
Reports from January suggest Volkswagen is considering establishing production sites in the U.S. for its Audi and Porsche brands to avoid tariff-related fallout.
The human cost: 677,000 are employed globally, excluding the U.S.
Nissan (Japan)
Nissan is contemplating transferring some production from Mexico to the U.S.
The human cost: Up to 13,000 people.
Compal Electronics and Inventec update
There are reports suggesting that Taiwan has expressed willingness to drop all tariffs on the United States as part of negotiations in response to recent U.S. tariff announcements. Taiwan’s President Lai Ching-te offered zero tariffs as a basis for talks with the U.S., pledging to remove trade barriers and increase Taiwanese investments in the U.S. However, the specifics of whether this is a finalised agreement or still a proposal in negotiation is not yet clear.
Summary
While these announcements indicate intent or concrete plans, the extent of implementation may vary, as some companies are still in the evaluation phase and economic or policy shifts could alter their strategies.
This is a win for Trump, but a loss for everyone else. Knowing that these companies put profits before people is rather Trumpian, which for Trump would be an added bonus.
Me? I’ve never fancied organisations that blatantly place profits before people and out of principle I probably won’t give these companies my business. I can hence cross the Rolls Royce off my shopping list.
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Thank you for these statistics of the companies putting profit before any loyalties to their workforce. One question though. How are they going to find a new workforce in these new USA plants to replace the experienced workers who will lose their jobs. The US doesn’t welcome immigrants so a whole new lot of people will have to be trained.
Could you do a similar article relating all the products here in Australia we can boycott- ie – anything with USA corporate connections?
Oh no. I had that in the article but I must have accidentally edited it out.
I’m glad your reminded , me, Judith. I’ll add it back in.
but what will happen if we just refuse to send products to the USA? like our beef used to make their hamburgers? where are they going to get their meat from then at short notice? no australian meat no hamburgers so mcdonalds will have to pressure trump to drop these tariffs because they will be going out of business without our meat!same with all those auto parts made in mexico and canada if they are not sent to the USA for a few weeks the auto companies in the USA will have to shut down!
Slutfights to come, survival of the greediest, dumbest, most cynical, all with open orifices well greased with Trump brand tariff elixir and salve, all for corporate life.
Phil Prior
Survival of the greediest and the most cynical? The most cynical would, by the very nature of cynicism, be the least greediest. Cynicism is a philosophy that recognises that material possessions do not bring happiness. The most cynical choose to live as simply as they can whilst possessing as little as possible. The cynics can be expected to cope better than the greedy.
One could add another HR issue for foreign and US manufacturers, ie. shortages of workers or ‘working age’ versus GOP voters, who describe themselves as both ‘working class’ and ‘middle class’.
However, the latter are retired and no longer ‘working age’; similar to Brexit support and compounded by far fewer immigrants, less tax intake, decline in services and delivery.
What is ignored is that these tariffs apply to physical goods trade, but neither services nor FDI foreign direct investment (nor fossil fuels) have tariffs applied?
US manufacturers and SMEs will suffer due to part offshore supply chains that cannot be avoided, hence, increase business costs and inflation depending upon level of imported components.
While US corporate and political elites are mute or passive vs Trump, including BigTech, Tesla, Apple etc., Xi can kick back with pressure on US investors in China eg. Tesla and Apple?
There is method in the madness with free market Koch on one side and the isolationist and anti-immigrant Tanton Network for tariffs on the other; but much is informed by the old economy and ‘segregation economics’ of Koch’s muse Buchanan.
It may trash the US domestic and global economy, but Trump’s US supporters in fossil fuels (inc Putin), Big Tech etc. can negotiate an exclusion, while the same narcissistic 0.01% don’t care about society.
Australia has a services deficit, but does far less trade with the US than many assume; our top partners are PRC, Japan, EU, South Korea then the US. The latter’s share of global trade has dropped from 20%+ to <15% and declining….UK has already dropped out of the top 10….
At least now Australia can recontinue our 20thC project of engaging with Asian and EU nations, that was interrupted by Howard, Murdoch, Tanton and Atlas Koch Network (IPA, CIS etc.), fossil fueled ‘segregation economics’ influence for a nativist ‘Anglosphere’, run by white minorities…..
Great read Michael, thanks for drilling down behind the headlines and flipping the other side of the Trumpian dime – the ‘ human cost.’ I learned so much from this report and likewise, looking forward to reading what the situation is in relation to Oz.
This won’t happen overnight,takes years to build factories and construction plants. So all propoganda for now.
I wish it was, David, but the announcements didn’t come from Trump but the companies themselves.
Andrew, that’s what I find odd. These companies will have tariffs slapped on them anyway, so it’s obvious that they are only interested in the American market.
Some of these companies, btw, already have manufacturing plants in America.
Tessie, I hated publishing this as it’s against my nature to even remotely suggest that Trump had a small win.
I won’t be buying a Swastikar Wankpanzer, either. Not even if they passed our safety standards.
None of these companies will be moving all, or even most of, their manufacturing to USAnia; just enough to satisfy the USAnian market. And, as has been pointed out, it takes years to construct such facilities plus there’s the issue of training workers. And the end products will still be more expensive than now, due to the higher costs of operating in USAnia.
leefe, that’s why I said ‘planning’ or ‘considering’.
For B. S., I was thinking of modern erroneous usage, (not mine) as certainly, the cynics advocated an austere view of the conduct of life.
Michael,
You’re heading down a dangerous road, next thing we know you will say that The Spud had a good idea about something.
How so, GL. My focus was to show how devastating this is for the little guy. “Trump’s had a win, but look at the devastation this win will cause.”
Michael,
I wasn’t being serious with The Spud comment. If it offened you then I apologise.
Not offended at all, GL. I knew you were joking about the Spud moment.
No apology required.
As I was putting this article together I had a nagging thought that people might take it the wrong way, and that played on my mind a fair bit. I was in the “get ready to pounce and defend the article” mode. As it turned out I didn’t need to.
It may well be that these companies are saying to trump that they are planning moving their operations to the US knowing that even planning can take years, so that they can negotiate a reduction in tariffs in the meantime. They only have to spread their planning out for three or so years. They need to purchase land, get local, state and federal approvals, source equipment, much of it from outside the US (which will attract tariffs) and engage contractors to build and install. Could take several years. But it is a bargaining point to have tariffs removed in the meantime.
I really must take more time to check spelling before posting a comment. The typing fingers can’t keep up with the speed of the thoughts.
Judith (@10.40 AM),
“One question though. How are they going to find a new workforce in these new USA plants to replace the experienced workers who will lose their jobs.” The following comes from the brilliant mind of Scott Bessent, Treasury Secretary and Trump haemorrhoid:
https://thehill.com/business/5236250-trump-tariffs-economic-recovery/
Gads, it works! Stop and check comment THEN hit Post Comment.
GL, I’m able to make corrections at any time. Do you want something changed?
Thanks for the offer, I just have to take more care rather than relying on my very own personal Michael the Spell Corrector Wizard. Although, having a Corrector Wiz…no…no…bad GL…
If it’s any consolation, Michael, you could instead bid for one of the late Laurie O’Neil’s rego plates (patriarch of philanthropic O’Neil family, who gave so generously to Dutton’s NO campaign) of which a mere handful (5) recently netted his heirs $3.945m at auction.
Oh yeah, not only ‘people employed’ costs, but also other resource costs, and the ‘hometown (not) opportunity’
Not only the construction time / costs
After drill, baby, drill and pump, where’s all the water for construction & manufacturing
I guess all the land required is coming from T-Rump’s flunkies and backers
And so on and so forth, ad infinitum ….
Indeed, Herbert. Who needs a Rolls Royce when you can have a number plate? 😁
It’s a no-brainer Michael. 🤫