Trump’s devastating effect on manufacturing and jobs

President Donald J. Trump delivers remarks at a Great American Agriculture Celebration on March 27, 2026. (Official White House photo)

By Zack Fields

Alaska has relatively little manufacturing, but the health of America’s manufacturing sector has profound effects on our state economy, including everything from availability of pipeline components to electrical transformers and gas turbines to vehicles.

Given our small, islanded electrical grids, we benefit when America is developing our electric generation resources and we suffer when prices go up due to poor federal policy. Unfortunately, America’s manufacturing sector has suffered acutely under Trump, due to erratic tariff policies and his attacks on the energy and vehicle development incentives that are necessary to compete with China.

First, let’s look at the record on economic growth. Inflation has climbed steadily since Trump imposed tariffs, rising from 2.2% to nearly 2.9% over the last nine months. These inflation rates vastly understate the inflationary effect of many manufactured goods. Copper and other metals tariffs as high as 50% are have led to massive price increases in transformers, wire and cable, switchgear, and other components. In addition to tariffs, Trump’s assault on battery, solar, wind, and electric vehicle manufacturing has led to massive contraction in U.S. manufacturing. Ford and Stellantis (the parent company of GMC/Chevy/Chrysler) have had to cancel factory expansions worth billions of dollars.  

According to Factcheck.org, manufacturing construction grew 200%, from $75.5 billion to $235.6 billion, during the Biden Administration. In contrast, manufacturing construction declined 6.7% during the Trump administration so far. Trump’s war on affordable clean energy will have generational consequences, as major investors pull out of America over his unprecedented attempt to block already permitted and under-construction energy projects. 

While courts have stepped in and allowed these projects to proceed, the builders engaged in the projects have lost hundreds of millions of dollars due to project delays, and the lack of secure property rights is driving investors to countries that honor the rule of law and due process.

Alaska has lost out directly as a result of Trump’s vendetta against affordable clean energy. His administration illegally cancelled wind and solar projects from Kotzebue to the Interior. The Trump budget killed the Little Mount Susitna and Shovel Creek wind projects that would have protected consumers against reliance on imported LNG. Even today, the Trump administration is delaying approval of the Delta Wind project, which would come in 30% cheaper than current GVEA prices.

There’s a tragic irony that Trump’s policies directly undercut his rhetoric around “energy dominance.” Far from dominance, his attack on domestic energy has allowed China to race ahead of America in the competition for global dominance over cheaper electric generation and transportation. This is doubly ironic for Alaska since electric vehicles, solar panels, and wind-generating systems significantly increase demand for critical minerals produced right here in our state.

For example, Greens Creek Mine in Southeast produces silver, whose demand has soared as solar is the leading source of energy generation being installed around the world.  

If Trump were supporting a true all-of-the-above energy strategy including renewables, that would maximize demand for Alaska mineral production. Instead, Trump is shutting down factory construction for electric vehicles and going to war against wind projects in the U.S., which helps foreign mine owners and processors at the expense of supply chains that should be built up in America.

The global economy has changed significantly over the last 25 years. A quarter century ago, coal was the cheapest source of generation for communities that lacked access to hydroelectric and electric vehicles were non-existent.  Today, natural gas is cheaper than coal, and solar, wind, and batteries are cheaper than gas or coal in almost all markets.  The total number of gas vehicles being sold has declined 31% since 2017, while both the total number and market share of electric vehicles have risen sharply.  

Electric vehicles are a majority of cars sold in China, the world’s largest market, but EV growth is actually fastest in the developing countries where subsidies play no role in market share. This is a clear indication that EVs will ultimately dominate the global market even if Trump constrains US production during his term. Again, the tragedy is that Trump’s antipathy toward EVs simply kills US manufacturing jobs, undermines Alaska’s mining sector, and is analogous to attempting to kill the internal combustion automobile in favor of buggy whip manufacturing a hundred years ago.

Rational federal policy would promote all-of-the-above energy development and the competitiveness of America’s manufacturing sector. Bipartisan Congressional work and Biden policies were doing that. In the last year, Trump has crippled American manufacturers in the back while waging jihad against cheaper clean energy for consumers. From an economic perspective, Trump’s policies are destructive both to Alaska and to our national security interests.

• Zack Fields is an Anchorage Democrat who co-chairs the House Labor and Commerce Committee in the Alaska House of Representatives.