Trump’s tariffs push factories to return, but is America ready to make again?

Trump’s tariffs push factories to return

US President Donald Trump’s sweeping new tariffs have reignited a global trade war—and for companies like Saitex, which makes jeans for brands like Everlane and Ralph Lauren, the gamble cuts both ways. While Trump hopes these tariffs will bring American factories “roaring back,” business leaders on the ground warn that the US simply isn’t prepared to scale up manufacturing fast enough, if at all, the New York Times reported.

From his dual operations in Los Angeles and Vietnam, Saitex CEO Sanjeev Bahl has watched the turbulence closely. His US facility, which opened in 2021, produces about 10% of the company’s jeans. The rest—half a million pairs a month—are made in Dong Nai Province, Vietnam. But Trump’s new 46% tariff on Vietnamese-made clothing, set to take effect in July, could upend that balance.

A costly push to ‘make in America’

Bahl has long championed the idea that “America can make stuff again.” But even he admits the system isn’t ready. The US lacks not only the skilled labour but also the domestic supply chains: there are no large-scale fabric mills, no major button or zipper suppliers, and too few trained workers.

A sewing machine operator in Los Angeles makes around $4,000 per month—eight times the wage of a Vietnamese counterpart. Factor in land, utilities, and compliance costs, and US manufacturing becomes viable only at a small scale or with high-tech automation. Saitex’s California plant cost $25 million; its Vietnam plant, built for mass production with sustainable technology, cost $150 million.

Even so, Bahl remains cautiously optimistic. “We could be the catalyst of the hypothesis that manufacturing can be brought back to the United States,” he said. He believes he could ramp up American output to 20% of total production. But doing more would require exemptions on some imports: cotton, buttons, zippers, and even fabric still need to be brought in from abroad.

Factories, but no workers

A key issue is labour. America is already short 500,000 manufacturing workers, according to Wells Fargo. Getting back to the 1970s peak of manufacturing employment would require hiring 22 million people. Right now, there are just over 7 million unemployed Americans.

Trump’s hardline immigration stance complicates matters further. Many factory workers in Los Angeles are immigrants from Mexico and Central America. Bringing millions of jobs back would require welcoming the very people Trump has sought to exclude.

Steve Lamar, head of the American Apparel and Footwear Association, calls it a “romantic notion” that the US can easily replace Asia’s vast manufacturing engine. “People want to see more clothing made in the US,” he said, “but no one wants their kids working in a factory.”

Legal wrangling and business limbo

The US Court of International Trade recently ruled the new tariffs illegal, but a higher court temporarily paused that decision while the Trump administration appeals. Amid the uncertainty, Bahl and others are left guessing: will they need to restructure global supply chains again? Should they invest more in American factories or shift production toward European markets?

Saitex already sends half its output to Europe. If Vietnam becomes too costly under US trade policy, the company may redirect even more exports there. That, Bahl warns, could put the future of the Los Angeles facility at risk.

A blueprint, or a cautionary tale?

Despite his commitment to US manufacturing, Bahl is under no illusions. The cost and complexity of rebuilding America’s production base are immense. His Vietnam plant, for instance, recycles 98% of its water and uses robotic automation for efficiency and sustainability. Recreating such a system in the US would take years and billions in public and private investment.

For now, Saitex remains a rare hybrid—partly American, largely global, and entirely exposed to the unpredictability of tariff politics.

“Until we see real support,” Bahl said, “America’s manufacturing revival will be more slogan than solution.”