AMERICA – The United States has increased tariffs on imported steel from 25% to 50%, a bold step meant to fortify domestic manufacturing and revive the nation’s steelmaking industry.
The White House insists the move will “strengthen America’s industrial base” and “create millions of jobs,” according to an official fact sheet published in June. Steel, it emphasized, remains vital to sectors like construction, energy, and transportation.
But trade economists warn the policy may backfire. The National Bureau of Economic Research found that previous tariffs under the Trump administration led to net job losses as higher steel costs strained downstream manufacturers.
David Elliott, a senior writer for the World Economic Forum, wrote that “manufacturers who depend on steel could cut jobs in response to rising costs,” referencing 2018 data where more jobs were lost by steel-consuming industries than gained in steel production.
Beyond economics, the decision exposes a deeper problem: talent scarcity. With over 400,000 open manufacturing roles nationwide, questions arise about whether U.S. firms can meet the potential surge in demand.
A recent Deloitte report projects that nearly 1.9 million new manufacturing jobs may go unfilled by 2033. The skills gap, not just the labor gap, is the challenge. “For every 20 open positions, we might find one qualified person,” a manufacturing executive told The New York Times in April.
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The World Economic Forum’s Future of Jobs Report 2025 estimates that by 2030, 40% of core worker skills will either change drastically or become obsolete. In steelmaking, automation, digital tools, and sustainability practices are redefining required competencies.
The U.S. is currently self-sufficient in producing 75% of its steel. Reshoring the remaining 25%, however, demands modernized plants and upgraded workforce capabilities. Nippon Steel’s recent $11 billion investment in U.S. Steel aims to introduce advanced steel technologies and create 70,000 jobs—roles that require reskilling.
“People remain at the heart of production, regardless of how advanced technology gets,” says a white paper titled Putting Talent at the Centre released by the Forum this year.
The World Economic Forum’s Frontline Talent of the Future initiative urges businesses to adopt “human-centric, high-performing operations,” emphasizing upskilling and reskilling as critical to long-term growth.
While the administration defends tariffs as a job-creating measure, the real test lies in whether U.S. industry can supply not just jobs—but the talent to fill them.