"Traditional sectors are suffering. Since April, machinery giant John Deere has cut more than 2,000 jobs, citing cost increases blamed on Trump’s tariffs. The big three carmakers – Ford, GM and Stellantis – claim that tariffs will cost them US$7 billion in lost earnings in 2025, with severe consequences for pay and jobs.
Will the tech sector’s massive capital spends offset these losses? Most of the US$300 billion pledged by firms like Apple and Amazon is earmarked for AI infrastructure: high-powered data centres, custom chips, graphics processing units and cloud networks.
These are capital-intensive projects that generate short-term construction jobs but offer little in the way of long-term employment.
Simultaneously, tech companies are downsizing as they substitute AI for human labour. Microsoft announced layoffs of 6,000 and 9,000 employees from its 228,000-strong global labour force in May and July 2025, including 800 in Washington, Microsoft’s home state.
And what about the quality of the remaining jobs? At Amazon, for example, the company’s software engineers have described how it is using AI to cut jobs and speed up work. According to reports, tasks that previously took weeks are now expected to be completed in days. One engineer told journalists that his team was halved in size, but is expected to produce the same amount of code, using AI tools.
The environmental costs of AI are mounting. Researchers have found that data centres already consume 4.4% of the US’s electricity. By 2028, AI could require as much power as 22% of American households use annually."
https://theconversation.com/trump-is-attracting-investment-to-the-us-but-at-a-huge-cost-to-workers-and-the-environment-267505
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