Impact of NAFTA on U.S. Manufacturing

SOURCE www.factcheck.org
President Trump and his administration have claimed that 90,000 U.S. plants and factories closed after NAFTA, but the figure is questionable. Experts say automation and other factors, rather than trade, were more responsible for the decline in U.S. manufacturing jobs.

Key Points

  • Automation and changing consumer preferences played a significant role in the decline of U.S. manufacturing jobs
  • Data from the Census Bureau's Business Dynamics Statistics database show a decrease in manufacturing establishments but not all were traditional plants or factories
  • Experts suggest that NAFTA's impact on manufacturing jobs was relatively modest compared to other factors such as technology and automation

Pros

  • Increased understanding of the complex factors affecting U.S. manufacturing job losses
  • Clarification on the role of automation and changing consumer tastes in the decline of manufacturing jobs

Cons

  • Misleading claims by President Trump and his administration about the number of closed factories post-NAFTA