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manufacturing
'Tariffs Haven't Helped': 72,000 Manufacturing Jobs—and Counting—Obliterated Since Trump's Liberation Day
“There’s very little in our product portfolio that has benefited from tariffs,” said the CEO of one North Carolina-based steel product company.
Feb 03, 2026
US President Donald Trump pledged that the manufacturing industry would come "roaring back into our country" after what he called "Liberation Day" last April, which was marked by the announcement of sweeping tariffs on imported goods—a policy that has shifted constantly in the past 10 months as Trump has changed rates, canceled tariffs, and threatened new ones.
But after promising to turn around economic trends that have developed over decades—the shipping of jobs overseas, automation, and the obliteration of towns and cities that had once been manufacturing centers—Trump's trade policy appears to have put any progress achieved in the sector in recent years "in reverse," as the Wall Street Journal reported on Monday.
Federal data shows that in each of the eight months that followed Trump's Liberation Day tariffs, manufacturing companies reduced their workforce, with a total of 72,000 jobs in the industry lost since April 2025.
The Census Bureau also estimates that construction spending in the manufacturing industry contracted in the first nine months of Trump's second term, after surging during the Biden administration due to investments in renewable energy and semiconductor chips.
"But the tariffs haven’t helped," said Hanson.
Trump has insisted that his tariff policy would force companies to manufacture goods domestically to avoid paying more for foreign materials—just as he has claimed consumers would see lower prices.
But numerous analyses have shown American families are paying more, not less, for essentials like groceries as companies have passed on their higher operating costs to consumers, and federal data has made clear that companies are also avoiding investing in labor since Trump introduced the tariffs—while the trade war the president has kicked off hasn't changed the realities faced by many manufacturing sectors.
"While tariffs do reduce import competition, they can also increase the cost of key components for domestic manufacturers," wrote Emma Ockerman at Yahoo Finance. "Take US electric vehicle plants that rely on batteries made with rare earth elements imported from overseas, for instance. Some parts simply aren’t made in the United States."
At the National Interest, Ryan Mulholland of the Center for American Progress wrote that Trump's tariffs have created "three overlapping challenges" for US businesses.
"The imported components and materials needed to produce goods domestically now cost more—in some cases, a lot more," wrote Mulholland. "Foreign buyers are now looking elsewhere, often to protest Trump’s global belligerence, costing US firms market share abroad that will be difficult to win back. And if bad policy wasn’t enough, US manufacturers must also contend with the Trump administration’s unpredictability, which has made long-term investment decisions nearly impossible. Perhaps it’s no surprise, then, that small business bankruptcies have surged to their highest level in years."
Trump's unpredictable threats of new tariffs and his retreats on the policy, as with European countries in recent weeks when he said he would impose new levies on countries that didn't support his push to take control of Greenland, have also led to "a lost year for investment" for many firms, along with the possibility that the US Supreme Court could soon rule against the president's tariffs.
“If Trump just picked a number—whatever it was, 10% or 15% to 20%—we might all say it’s bad, I’d say it’s bad, I think most economists would say it’s bad,” Dean Baker, senior economist at the Center for Economic and Policy Research, told Yahoo Finance. “But the worst thing is there’s no certainty about it.”
Constantly changing tariff rates make it "very difficult for businesses... to plan," said Baker. “I think you’ve had a lot of businesses curtail investment plans because they just don’t know whether the plans will make sense.”
While US manufacturers have struggled to compete globally, China and other countries have continued exporting their goods.
“There’s very little in our product portfolio that has benefited from tariffs,” H.O. Woltz III, chief executive of North Carolina-based Insteel Industries, told the Wall Street Journal.
US Rep. Marcy Kaptur (D-Ohio) noted Monday that the data on manufacturing job losses comes a week after Vice President JD Vance visited his home state to tout "record job growth."
"Here’s the reality: Families face higher costs, tariffs are costing manufacturing jobs, and over $200 million in approved federal infrastructure and manufacturing investments here were cut by this administration," said Kaptur. "Ohio deserves better."
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'An Abject Failure': Economists Trash Trump's Disastrous Job Creation Record in Year-End Reviews
"The jobs aren’t coming back, the wages aren’t rising," one economist said.
Dec 22, 2025
President Donald Trump has justified his historically high tariffs on foreign goods by promising that they would lead to a boom in domestic manufacturing jobs in the US.
However, in year-end reviews of the US job market, three economists make the case that Trump's record on creating manufacturing jobs has been a massive bust.
Mike Konczal, senior director of policy and research at the Economic Security Project and a former member of President Joe Biden’s National Economic Council, argued in his personal newsletter on Friday that the Trump administration's efforts to reorganize the US labor market away from service sector jobs have completely failed.
In particular, he found that jobs in manufacturing, mining, and logging have all declined throughout the first year of Trump's second term, while jobs in construction have remained mostly flat after years of steady growth during former President Joe Biden's administration.
What's more, the administration's stated goal of opening up more jobs for native-born US workers by conducting mass deportations of immigrant workers has also flopped, as native-born unemployment has been higher in 2025 than in either of the last two years.
"The bleak irony is that even after sacrificing real prosperity to chase this 4chan-level political economy, they still won’t achieve their goal," Konczal concluded. "The jobs aren’t coming back, the wages aren’t rising, and family formation won’t be rescued by trying to rewind the labor market to a world that never existed in the first place."
Nobel Prize-winning economist Paul Krugman concurred with Konczal's assessment of the US labor market in an analysis published Monday in which he described Trump's record on jobs as "an abject failure."
Krugman argued that Trump's war on clean energy projects is almost certainly making the situation even worse by killing blue-collar manufacturing and construction jobs in the wind and solar industries.
"Trump has scrapped Biden’s green energy policies in favor of tariffs and fossil fuels," Krugman noted. "But it isn’t working. Instead, employment in 'manly' sectors has fallen since Trump took office."
Additionally, said Krugman, Trump's plan to use tariffs to bring back manufacturing jobs to the US was always destined to fail given the realities of how modern economies work.
"In the modern world nations mostly don’t sell each other completed consumer goods," he explained. "Instead, the majority of trade involves sales of goods that are used to produce other goods... What this means in practice is that tariffs, which raise the prices of those capital goods and inputs, raise the production costs of US manufacturers, in many cases making them less competitive with foreign producers."
Ball State University economist Michael J. Hicks, in a column published Monday by the Indianapolis Star, also pointed the finger at Trump's tariffs when explaining his failure to revive US manufacturing.
Hicks argued that the damage the president's policies have done to manufacturing won't be undone any time soon.
"The US is in the early days of a manufacturing contraction that will run through most of 2026, even if the tariffs are lifted today," he warned. "We should call it the deindustrialization of America. All of this flies in the face of the nonsensical claims of a manufacturing renaissance or onshoring that would bring factory jobs back to the US."
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Trump's North American Trade Deal 'Created More Problems Than It Fixed': Analysis
The trade deficit has grown and the US has lost manufacturing jobs during the first nine months of Trump's second term.
Dec 11, 2025
A new analysis from the Economic Policy Institute claims that the signature trade deal from President Donald Trump's first term has actually "created more problems than it fixed."
The report, published Thursday, notes that the United States-Mexico-Canada Agreement (USMCA), signed into law by Trump in 2020, has completely failed to fulfill Trump's stated goal of lowering the US trade deficit with Canada and Mexico, which has grown from a combined $125 billion in 2020 to $263 billion in 2025.
This increased trade deficit was particularly notable when it comes to the auto industry, says the report, written by EPI senior economist Adam S. Hersh.
"In the critical automotive industry that Trump said he wanted to reshore, imports of motor vehicles and parts from Mexico nearly doubled following USMCA, rising to $274 billion in 2024, up from $196 billion in 2019," the report explains. "Light-duty vehicles imports from Mexico rose 36% while imports of medium- and heavy-duty vehicles increased a whopping 256%."
The report also finds that the trade deal "left a gaping loophole for Chinese manufacturers to exploit duty-free access to North American markets without reciprocal market access for US manufacturers," the result of which was "Chinese firms expanded their direct investment footprint in Mexico by as much as 288% through 2023."
The bottom line, says the report, is "Trump’s USMCA created more problems than it fixed," and that "today the pressure on manufacturing jobs and deterioration in the trade balance with Mexico are worse than before USMCA."
However, the report also says that the US, Canada, and Mexico have an opportunity to significantly improve on USMCA given that the deal is up for review next year.
Among other things, the report recommends closing the loopholes that have allowed Chinese manufacturers to rapidly expand their footprint in Mexico; expanding the the Rapid Response Labor Mechanism that "has helped improve wages and working conditions in a number of specific workplaces"; and slashing intellectual property rights provisions that "currently allow companies to preempt local laws addressing negative externalities from digital service provision."
The EPI report came on the same day that American Economic Liberties Project's Rethink Trade program released an analysis showing that Trump so far has failed to live up to his pledge to reduce the US trade deficit and revive domestic manufacturing.
In all, Rethink Trade found that the US trade deficit increased more during the first nine months of 2025 than it did during the first nine months of 2024. Additionally, the group found that the US has actually lost 49,000 manufacturing jobs since the start of Trump's second term.
Lori Wallach, director of the Rethink Trade program, said that "the nine-month data show outcomes that are the opposite of President Trump’s promises to cut the trade deficit and create more American manufacturing jobs."
She noted that Trump's trade deals so far "seem to prioritize the demands of Big Tech, Big Oil, Big Pharma, and other usual beneficiaries of decades of failed US trade policy instead of fixing the root causes of our huge trade deficit to help American manufacturing workers and firms as he promised."
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