The reshoring to the United States: tariffs, tax incentives, and global impact

Marija Marčetić; Bojan Kocić; Jovana Anđelković

doi:10.71159/icemit2561M

Authors

Marija Marčetić Toplica Academy of Applied Studies, Department of Business Studies Blace, Serbia
Bojan Kocić Toplica Academy of Applied Studies, Department of Business Studies Blace, Serbia
Jovana Anđelković Toplica Academy of Applied Studies, Department of Business Studies Blace, Serbia

DOI:

https://doi.org/10.71159/icemit2561M

Keywords:

customs, tax, subsidies, reshoring, international trade

Abstract

The reindustrialization of the United States in recent years has been driven by a strategic combination of tariffs and targeted tax incentives. Tariff measures, particularly on steel, aluminum, and selected imported goods, aimed to protect domestic manufacturing from foreign competition and reduce trade deficits. Simultaneously, federal and state-level tax credits and subsidies—such as the Advanced Manufacturing Investment Credit, production-based incentives, and R&D tax benefits—have stimulated investment in high-tech and clean energy manufacturing. This dual approach seeks to revitalize domestic production, enhance technological innovation, and secure supply chains, while also presenting challenges such as potential trade tensions and increased production costs. Overall, these policies reflect a deliberate effort to strengthen the U.S. industrial base and foster long-term economic competitiveness.

References

Alam, M. (2024). Output, employment, and price effects of U.S. narrative tax changes: A factor-augmented vector autoregression approach. Empirical Economics, 67, 1421–1471. https://doi.org/10.1007/s00181-024-02591-2

Barro, R. J., & Furman, J. (2018, March 8). Macroeconomic effects of the 2017 tax reform. Brookings Institution. https://www.brookings.edu/articles/macroeconomic-effects-of-the-2017-tax-reform/

Boer, L., & Rieth, M. (2024). The macroeconomic consequences of import tariffs and trade policy uncertainty (IMF Working Paper No. 2024/013). International Monetary Fund. https://doi.org/10.5089/9798400265143.001

Caldara, D., Iacoviello, M., Molligo, P., Prestipino, A., & Raffo, A. (2020). The economic effects of trade policy uncertainty. Journal of Monetary Economics, 109, 38–59. https://doi.org/10.1016/j.jmoneco.2019.11.002

Freund, C., Mattoo, A., Mulabdic, A., & Ruta, M. (2024). Is U.S. trade policy reshaping global supply chains? Journal of International Economics, 32, 104011. https://doi.org/10.1016/j.jinteco.2024.104011

Furno, F. (2026). The macroeconomic effects of corporate tax reforms. arXiv. https://arxiv.org/pdf/2111.12799

Gale, W. G., Gelfond, H., Krupkin, A., Mazur, M. J., & Toder, E. (2018). Effects of the Tax Cuts and Jobs Act: A preliminary analysis. Brookings Institution. https://www.brookings.edu/articles/effects-of-the-tax-cuts-and-jobs-act-a-preliminary-analysis/

Gravelle, J. G., & Marples, D. J. (2019). The economic effects of the 2017 tax revision: Preliminary observations. Congress.gov. https://www.congress.gov/crs-product/R45736

Hartley, J. S., Hassett, K. A., & Rauh, J. D. (2025). Firm investment and the user cost of capital: New U.S. corporate tax reform evidence (NBER Working Paper No. 33914). National Bureau of Economic Research.

Joint Committee on Taxation. (2017). Estimated budget effects of the conference agreement for H.R. 1, the Tax Cuts and Jobs Act. https://www.jct.gov/publications/2017/jcx-67-17/

Min, R. (2025). Does Trump’s tariff make America great again? An empirical analysis of U.S.–China trade war impact on American business formation (2018–2025). arXiv. https://arxiv.org/abs/2506.00999

U.S. Department of Agriculture. (2020). Market Facilitation Program information on payments for 2019. https://www.gao.gov/products/gao-20-700r

Vakhshouri, S. (2017). The America first energy plan: Renewing the confidence of American energy producers. Atlantic Council. https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/the-america-first-energy-plan-renewing-the-confidence-of-american-energy-producers/

Žemaitytė, S., & Urbšienė, L. (2020). Macroeconomic effects of trade tariffs: A case study of the U.S. - China trade war effects on the economy of the United States. Organizations and Markets in Emerging Economies. https://www.redalyc.org/journal/6923/692374308002/html/