Wells Fargo Warns Trump: Tariffs Won’t Bring Back U.S. Manufacturing Jobs

President Donald Trump continues to tout tariffs as a tool to revive U.S. manufacturing, but a new Wells Fargo report says the goal remains out of reach, Fortune’s Sasha Rogelberg reported.

The bank’s report suggests tariffs are doing little to reverse this trend and instead increase production costs, reduce hiring incentives, and hurt long-term industrial growth. Photo: Wells Fargo

Manufacturing employment in the U.S. currently sits at 12.8 million—far below the 1979 peak of 20 million.

The bank’s report suggests tariffs are doing little to reverse this trend and instead increase production costs, reduce hiring incentives, and hurt long-term industrial growth.

“To return to 1979 levels, the U.S. would need to invest $2.9 trillion in its manufacturing base,” wrote report author Sarah House. “A meaningful increase in factory jobs does not appear likely in the foreseeable future.”

While Trump paused some Chinese tariffs for 90 days earlier this month, he has since threatened a 50% levy on European Union imports and a 25% tariff on Apple products unless the company moves iPhone production to the U.S.

Earlier this month, Trump told reporters he had a “little problem” with Apple CEO Tim Cook over production in India. Analysts have warned that moving iPhone manufacturing stateside would significantly raise consumer costs.