US Manufacturing Sector 'Sputtering' as Trump Tariffs Hit Consumers

After multiple delays, the "reciprocal" tariffs first announced this past spring by U.S. President Donald Trump went into effect on Thursday even as the American economy is showing serious signs of weakness.

As reported by CNBC, the new tariffs hit nations all over the world and included particularly hefty tariffs on longtime trading partners such as Brazil, which got hit with a 50% tariff as Trump tries to pressure the country to drop criminal charges against former President Jair Bolsonaro, who allegedly plotted a coup attempt after losing the 2022 general election to current President Luiz Inácio Lula da Silva.

While many longtime U.S. allies such as the European Union and Japan struck deals with Trump ahead of this week's deadline, their products are still getting hit with 15% tariffs that are far higher than any duties placed on foreign goods in decades.

On his Truth Social page on Thursday morning, Trump celebrated the implementation of the tariffs and declared that "tariffs are flowing into the USA at levels not thought even possible!"

However, the president's triumphant tone does not match what consumer sentiment and economic data are currently showing. The Wall Street Journal reported on Wednesday that the American manufacturing economy, which Trump has claimed will benefit the most from his tariffs, is currently "sputtering" as companies face higher costs of key inputs such as steel, aluminum, and copper.

"From March to July, U.S. manufacturing activity contracted, according to the Institute for Supply Management's monthly survey," noted WSJ. "The Manufacturing PMI last registered at 48, below the 50 score that differentiates growth and decline."

The Journal also cited top domestic manufacturers such as Whirlpool, Polaris, and Harley-Davidson who say that consumer demand has been hit in recent months as consumers pull back spending in the face of the president's tariffs. In fact, Polaris CEO Mike Speetzen told investors during a recent earnings call that "consumers are really just reluctant to go spend right now unless they really need to or they're fortunate enough to have the financial flexibility to do that."

Data released last week also showed that the American labor market overall has nearly ground to a halt over the last three months, as the economy added an average of 35,000 jobs per month from May through July.

As if all that weren't enough, the tariffs are expected to hit Americans with price increases across a wide range of products during a time when voters say they are still very anxious about the cost of groceries.

Leor Tal, campaign director for the progressive advocacy organization Unrig Our Economy, blasted Trump's tariffs as "a tax on working-class families, raising costs on everyday goods, killing jobs, and more." He also challenged Republican lawmakers who in the past have spoken up against the tariffs to use their power to retake from the president the authority to levy taxes.

"When they return from their month-long vacation, will Republicans finally change course and vote to end these tariffs, since—according to them—they are bad for the economy?" he asked. "If they truly want to support their constituents, and not just millionaires and billionaires, they should."

Sen. Ron Wyden (D-Ore.) delivered a similarly scathing denunciation of Trump's tariffs, which he labeled "backward economic policies."

"The management of these tariffs has been utterly chaotic, secretive and ripe for corruption as Trump and his advisors scheme and deal behind closed doors," he said. "Regardless of whether Trump still doesn't know what tariffs are or is lying about them, he should never be forgiven for jacking up the cost of living by thousands of dollars per year after campaigning on a promise to bring prices down across the board."

Rep. Rosa DeLauro (D-Conn.), ranking member of the House Appropriations Committee, said that Trump's tariffs are a complete betrayal of his 2024 campaign pledges to bring down the cost of living.

"The damage is only beginning," she said of the tariffs. "Everything from shoes to dish soap, to diapers, to American automobiles, is about to cost more. President Trump and the billionaires he serves could not care less. To them, your cost-of-living increase is just the cost of doing business."