The U.S. manufacturing sector continues to struggle under the weight of President Trump’s tariffs, with only four industries reporting growth as uncertainty looms.
The U.S. manufacturing sector is grappling with the ongoing uncertainty stemming from President Donald Trump’s tariffs. In November, manufacturing activity contracted for the ninth consecutive month, as factories faced declining orders and rising input costs due to the persistent impact of import tariffs.
“The manufacturing sector continues to be weighed down by the unpredictable tariffs landscape,” stated Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets.
Since his return to office in January, President Trump has pursued an aggressive tariff agenda aimed at reshoring production, protecting domestic industries, and reducing reliance on foreign-made industrial inputs. A significant aspect of this agenda has been the substantial increase in tariffs on steel and aluminum, among other goods.
These tariffs were introduced under the pretext of national security and “economic sovereignty,” reviving and expanding the tariff framework first established during Trump’s earlier presidency. By mid-2025, tariffs on imported steel and aluminum had soared to approximately 50%.
The administration contends that these tariff hikes are essential for leveling the playing field for U.S. manufacturers and addressing what it describes as unfair foreign subsidies, dumping practices, and dependency risks. Proponents argue that the elevated tariffs have bolstered competitiveness for certain domestic producers of raw materials, particularly in the steel and aluminum sectors.
Historically viewed as foundational for national defense and large-scale infrastructure projects, these industries have experienced modest improvements in pricing power and investment sentiment. The White House asserts that these measures will foster long-term reshoring, enhance factory investment, and secure American supply chains against geopolitical shocks.
However, the Institute for Supply Management (ISM) survey released recently revealed that some manufacturers in the transportation equipment sector are linking layoffs to Trump’s sweeping tariffs. They reported, “We are starting to institute more permanent changes due to the tariff environment,” which includes staff reductions, new guidance to shareholders, and the development of additional offshore manufacturing that would have otherwise been intended for U.S. export.
The ongoing uncertainty generated by President Trump’s tariffs has left the U.S. manufacturing landscape fraught with challenges. While certain sectors, such as steel and aluminum, have seen slight gains in pricing power, the overall sentiment remains cautious. The administration frames these tariffs as necessary for protecting domestic industries, bolstering investment, and encouraging reshoring.
Despite the administration’s defense of the tariffs as vital for safeguarding domestic manufacturing, economists argue that restoring the industry to its former strength is unlikely due to underlying structural issues, including a shortage of skilled workers.
“We can see no sign in this report of a surge in manufacturing in the United States since the tariff regime was unveiled last spring,” remarked Carl Weinberg, chief economist at High Frequency Economics. “The manufacturing sector is sick.”
According to the ISM survey, only four industries, including computer and electronic products and machinery, reported growth amid the prevailing challenges.
Source: Original article