I understand that President Trump’s tariffs have resulted in some increased prices for consumers. That is reflected in my grocery bill. But I also understand that there are also two very important benefits from the tariffs. The first is the amount of money being paid to America because of the tariffs (and the investments being made into America). The second is the manufacturing that is coming back to America because of the tariffs. The manufacturing coming in has a temporary benefit–manufacturing plants being bought, constructed, or refitted–and a long-term benefit–manufacturing jobs for Americans. Because many talking heads (and Americans) are looking for instant gratification, they are ignoring the long-term benefits.
On Monday, The Center Square posted an article announcing that Honda would be opening a manufacturing plant in Ohio.
The article reports:
Honda on Monday announced plans for a $3 billion manufacturing plant in central Ohio to boost its production of hybrid vehicles, a project that could bring 2,000 jobs to the area between East Liberty and Marysville.
It will be the company’s ninth auto-related production facility in the U.S. with production expected to launch in 2029, the company said in a news release.
The Ohio Tax Credit Authority on Monday approved Honda for an undisclosed amount of tax credit. The exact amount, the authority says, is to be made public after a final agreement is executed. The start of construction is pending government approvals.
“While supporting growing demand for hybrid and gasoline-powered vehicles, the plant will provide Honda with the flexibility to adapt production as customer demand, market conditions and electrification trends evolve,” the company said in a statement made available to The Center Square.
Honda chose Ohio because of its highly skilled workforce and proximity to the company’s American supply base.
The article concludes:
The Ohio plant is part of a growing network of investments the company is making in the U.S. “that will expand and strengthen an integrated U.S. production network to boost production of hybrid-electric vehicles and the engines and hybrid systems that power them,” Honda said Monday.
With investments also in Georgia and Alabama, Honda will eventually make 1.3 million vehicles a year in the United States, according to a release.
“Honda also plans to pursue assistance from JobsOhio, which will be made public after a final agreement is executed,” a release said.
JobsOhio is a private nonprofit corporation funded by profits from liquor franchise rights it purchased from the state of Ohio in 2013, according to its website.
There is also a message here that companies who relocate manufacturing to America are looking for areas with a highly skilled workforce. America needs to improve its education so that it will maintain that highly skilled workforce.