Trump admin has moved ‘FULL STEAM AHEAD’ on this, says economist

Key Concepts

• Tariff Adjustments: The US administration’s recent pullback on tariffs, particularly on kitchen cabinets and furniture, and the potential motivations behind it.
• Minimum Wage Increases: The impact of rising minimum wages in 19 states on employment, particularly in relation to automation and AI.
• Native-Born vs. Foreign-Born Employment: Analysis of job gains and losses among native-born and foreign-born workers under the Trump and Biden administrations, and the debate surrounding the data.
• Manufacturing Reshoring: The administration’s commitment to bringing manufacturing back to the United States and the challenges associated with it.
• Regulatory & Tax Reform: The role of national-level policy in counteracting negative effects of state-level minimum wage increases and fostering a business-friendly environment.
• Crime Statistics: A notable decrease in homicides during President Trump’s term.

---

Tariff Policy and Manufacturing Reshoring

The discussion began with the administration’s decision to roll back tariffs on certain imports, specifically kitchen cabinets and furniture. Michael Faulkender explained this isn’t necessarily a shift in overall policy, but rather a pragmatic adjustment. The administration recognizes the decades-long trend of manufacturing moving offshore and President Trump is committed to reshoring, but acknowledges this process isn’t instantaneous. Capacity to produce these goods domestically needs to be built, and the tariff adjustments reflect a sector-by-sector assessment of what can be realistically brought back quickly versus what requires longer-term investment. Faulkender dismissed the connection to an upcoming Supreme Court decision regarding IEEPA tariffs (tariffs implemented under emergency economic authority), stating that even if those tariffs are overturned, other legislative tools like Section 232 or 301 tariffs remain available to achieve similar outcomes.

The Impact of Minimum Wage Increases

E.J. Antoni argued that increasing minimum wages are counterproductive to job creation, particularly in the face of increasing automation driven by Artificial Intelligence (AI). He asserted that businesses are incentivized to replace entry-level employees with technology when labor costs are artificially inflated. Antoni cited the example of fast-food restaurants replacing cashiers with self-service kiosks, leading to job elimination. He stated, “If you want to replace workers with technology, the minimum wage is a terrific way to make that happen.” He emphasized that the “real minimum wage is not whatever the government says it is, it’s zero,” meaning that increased minimum wages ultimately lead to job losses for those affected. He contrasted this with positive national-level policies like regulatory and tax reform, which he believes can counteract the negative effects of state-level minimum wage hikes and promote a more business-friendly environment.

Employment Trends: Native-Born vs. Foreign-Born Workers

A significant portion of the discussion focused on employment data, specifically a comparison of job gains and losses between native-born and foreign-born workers. The conversation was sparked by a report from The Washington Post questioning the Trump administration’s claim of a boom for native-born workers. Faulkender presented data showing that from November 2024 to November 2025, all job growth was attributable to native-born Americans, a stark contrast to the Biden administration years where job growth was primarily driven by foreign-born workers (with a gain of over 2.6 million native-born jobs and a loss of 21,000 foreign-born jobs in 2025). He criticized The Washington Post for seemingly dismissing this data because it supported the Trump administration’s position, accusing the publication of undermining the credibility of the Bureau of Labor Statistics (BLS) – an agency they typically defend – when the data didn’t align with their “liberal agenda.”

State-Level Economic Policies

The discussion also touched upon state-level economic policies. Nine states were noted to be cutting individual income taxes, and these states were described as not being “blue states” (implying they are politically conservative). This was presented as a positive development, aligning with the President’s tax cuts for wages on tips and overtime.

Crime Statistics

A final point raised was a significant one-year drop in homicides during President Trump’s term, described as “the biggest one-year drop in homicides, ever.” This was presented as another positive outcome of the administration’s policies.

Logical Connections

The conversation flowed logically from tariff adjustments to the broader goal of manufacturing reshoring. The discussion then transitioned to the impact of minimum wage increases on employment, linking it to the potential for automation. The employment data segment served as a direct response to a challenge from The Washington Post, providing a counter-narrative to their reporting. The mention of state-level tax cuts and the crime statistics served as additional examples of positive economic trends.

Synthesis/Conclusion

The core takeaway from the discussion is a defense of the Trump administration’s economic policies and a critique of opposing viewpoints. The panelists presented a narrative of pragmatic tariff adjustments aimed at strategically reshoring manufacturing, warned against the negative consequences of minimum wage increases, and highlighted favorable employment data for native-born Americans. They also expressed skepticism towards media outlets perceived as biased against the administration. The overall message emphasizes a pro-business, pro-American worker agenda and a belief that the administration’s policies are fostering positive economic outcomes.