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manufacturing
Trump Tariffs Ruled Illegal—Again—as Data Shows Promised Manufacturing Boom Is Nonexistent
"The average household has already had nearly $2,000 stolen from them by this administration, and they should not have to pay a penny more," said one House Democrat.
May 08, 2026
A panel of federal judges ruled Thursday that US President Donald Trump's sweeping 10% tariffs on most imports are unlawful, another major legal blow to the centerpiece of the Republican president's economic agenda—which has failed to produce the manufacturing boom he repeatedly promised on the campaign trail.
The Court of International Trade (CIT) found in a 2-to-1 ruling that Trump violated the law when he unilaterally enacted the 10% import taxes following a February decision by the US Supreme Court, which struck down tariffs the president imposed using emergency powers. But the CIT's ruling, which the Trump administration is expected to appeal, only barred collection of the tariffs from some of the plaintiffs in the case—including a pair of businesses and Washington state—limiting the ruling's immediate impact.
Rep. John Larson (D-Conn.), a member of the House Trade Subcommittee, applauded the new ruling in a statement, saying that "Trump must comply with the law by ending his illegal tax on the American people and getting families and small businesses the refunds they are owed."
"The Supreme Court already rebuked the president's costly tariffs, but Donald Trump sees our Constitution as a mere suggestion to follow, and not the law of the land,” said Larson. “As families are squeezed by sky-high grocery bills and gas prices, his latest round of tariffs is only pouring salt in the wound. The average household has already had nearly $2,000 stolen from them by this administration, and they should not have to pay a penny more."
The decision came as a new analysis of trade and manufacturing data from the first quarter of 2026 found that the president's "actions on trade have not delivered on his promises to quickly balance trade and revitalize US manufacturing." Since Trump's return to the White House last year, US manufacturing employment has declined by 82,000 jobs, according to the Rethink Trade program at the American Economic Liberties Project.
Additionally, the nation's trade deficit was higher during the first three months of this year compared to the same period in 2024, Rethink Trade found.
“The first-quarter 2026 data show President Trump’s promises to prioritize speedily cutting the trade deficit and create more American manufacturing jobs are getting undermined by his chaotic and often mistargeted use of tariffs and squandering of leverage to demand other countries gut their Big Tech anti-monopoly and other policies instead of mercantilist abuses fueling the trade deficit,” said Lori Wallach, Rethink Trade's director.
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'A Declaration of War Against the Working Class': Sanders Demands Bezos Testify Over AI Robot Plan
"Our job is to ensure that this new technology benefits working families and is not simply used as another tool to make the wealthiest people in the world unimaginably richer."
Mar 24, 2026
Sen. Bernie Sanders is demanding that Amazon founder Jeff Bezos testify about plans to use robots powered by artificial intelligence to replace human workers.
In a Monday announcement, Sanders (I-Vt.) cited a report published by The Wall Street Journal outlining Bezos' ambitions "to raise $100 billion for a new fund that would buy up manufacturing companies and seek to use AI technology to accelerate their path to automation."
The Journal obtained investor documents describing the new Bezos initiative as a "manufacturing transformation vehicle" that would buy up firms in key industries such as chipmaking, defense, and aerospace, and use AI to boost the efficiency of their operations.
Sanders, the ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, warned that such a plan would risk putting millions of blue-collar manufacturing workers out of jobs.
Because of this, he asked Sen. Bill Cassidy (R-La.), chairman of the HELP Committee, to demand that Bezos testify about his new project’s impact on the working class.
"We must demand that Mr. Bezos come before our committee to explain to the American people why he believes it’s a good idea to replace millions of American workers with robots,” Sanders said. "We need to understand what will happen to these workers... will they simply be thrown out on the street in order to make Mr. Bezos even richer?"
Sanders emphasized the vital role of government in ensuring that advancements in technology are not used to further impoverish workers and erode their collective bargaining power.
"Our job is to ensure that this new technology benefits working families and is not simply used as another tool to make the wealthiest people in the world unimaginably richer," Sanders said. "The American people are increasingly apprehensive about the impact that AI and robotics will have on the economy and their lives. Congress needs to act."
In a separate social media post, Sanders described Bezos' plan as "a declaration of war against the working class."
Sanders for months has been raising alarms about the impact of AI on the global working class and democracy itself.
In December, Sanders called upon the US to impose a nationwide moratorium on the construction of AI data centers, warning of a future envisioned by tech moguls such as Microsoft co-founder Bill Gates, who has said that humans won’t be needed "for most things" thanks to advancements in AI.
"Do you believe that these guys, these multibillionaires, are staying up at night, worrying about what AI and robotics will do to working families of our country and the world?" Sanders asked. "Well, I don’t think so.”
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'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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'Business Continues to Be Severely Depressed': New Reports Paint Dark Picture of Trump Economy
"The addition of the derivative steel and aluminum tariffs in the middle of the month... was devastating," said one manufacturing executive.
Oct 01, 2025
Two reports released Wednesday paint an increasingly dark picture of the American economy under US President Donald Trump, matching predictions that his tax policy and chaotic tariffs would ultimately harm workers and put a drag on the nation's financial outlook.
First, processing firm ADP estimated in its latest monthly report that the US economy lost 32,000 jobs in September, with contractions in employment happening across multiple industries.
The leisure and hospitality industry was hardest hit, as ADP estimated it lost 19,000 jobs last month, followed by professional and business services, which lost an estimated 13,000 jobs, and financial activities, which lost an estimated 9,000 jobs.
Small businesses took the biggest hit, as they shed 40,000 employees on the month, ADP estimated.
Nela Richardson, chief economist at ADP, said these latest numbers validate "what we've been seeing in the labor market, that US employers have been cautious with hiring."
The ADP report is not seen as reliable as the monthly jobs report issued by the Bureau of Labor Statistics, although that report will not be released on Friday as previously scheduled due to the current shutdown of the federal government.
In addition to the ADP survey, the latest ISM Manufacturing PMI Report revealed that the "manufacturing sector contracted in September for the seventh consecutive month" amid uncertainty caused in large part by Trump's tariffs.
Comments made by executives in the new ISM survey point to a dire situation facing many US manufacturers.
"Business continues to be severely depressed," said one respondent. "Profits are down and extreme taxes (tariffs) are being shouldered by all companies in our space. We have increased price pressures both to our inputs and customer outputs as companies are starting to pass on tariffs via surcharges, raising prices up to 20 percent."
This executive, who works for a transportation equipment firm, added that "the addition of the derivative steel and aluminum tariffs in the middle of the month—with no announcement—was devastating."
An executive at an electrical equipment supplier, meanwhile, said that "customer orders are depressed for heavy machinery because tariffs are so impactful to high-end capital equipment." The executive said their company's revenue projections were flat for the rest of the year, with "no outlook to improve in 2026."
Another manufacturing executive simply said, "Steel tariffs are killing us."
This gloomy sentiment isn't just shared by business executives, but also US consumers. The Conference Board on Tuesday released its Consumer Confidence Index showing a "sharp deterioration in consumers’ views of the current economic situation" in the US.
Stephanie Guichard, senior economist at The Conference Board, noted that consumer confidence numbers are now the lowest they've been since April 2025, when Trump sent shockwaves through the economy by announcing his so-called "Liberation Day" tariffs that he partially backed away from in the face of a cratering stock market.
"Consumers’ assessment of business conditions was much less positive than in recent months, while their appraisal of current job availability fell for the ninth straight month to reach a new multiyear low," Guichard explained. "This is consistent with the decline in job openings."
The Conference Board also found that consumers' short-term outlook for income, business, and labor market conditions was once again below the threshold that "typically signals a recession ahead."
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Trump Tariff Regime Slammed as Manufacturing Jobs Crater
"The manufacturing sector is struggling more than the rest of the labor market under Trump's tariffs, and manufacturing workers' wage growth is stagnating."
Sep 05, 2025
US President Donald Trump's tariff policies, imposing levies as high as 50% on the United States' trading partners, have not proven compatible with his campaign promise to turn the US back into a "manufacturing powerhouse," as Friday's jobs report showed.
The overall analysis was grim, with the economy adding just 22,000 jobs last month, but manufacturing employment in particular has declined since Trump made his April 2 "Liberation Day" announcement of tariffs on countries including Canada and Mexico.
Since then, the president has introduced new rounds of tariffs on imports from countries he claims have treated the US unfairly, and all the while manufacturers have tightened their belts to cope with the higher cost of supplies and materials.
Overall manufacturing employment has plummeted by 42,000 jobs, while job openings and new hires have declined by 76,000 and 18,000, respectively, according to the Center for American Progress (CAP), which released a jobs report analysis titled Trump's Trade War Squeezes Middle-Class Manufacturing Employment on Friday.
"The manufacturing sector is struggling more than the rest of the labor market under Trump's tariffs, and manufacturing workers' wage growth is stagnating," said CAP.
Last month, the sector lost 12,000 jobs, while wages for manufacturing workers stagnated.
In line with other private employees, workers in the sector saw their wages go up just 10 cents from July, earning an average of $35.50 per hour.
"Despite Trump's claims that his policies will reignite the manufacturing industry in the United States, his policies have achieved the opposite," wrote policy analyst Kennedy Andara and economist Sara Estep at CAP.
The findings are in line with the Federal Reserve Bank of Dallas' Texas Manufacturing Survey, which was taken from August 12-20 and found that 72% of manufacturing firms say the tariffs have had a negative impact on their business.
"The argument is: We're all meant to sacrifice a bit, so that tariffs can help rebuild American manufacturing. Let's ask American manufacturers whether they're helping," said University of Michigan economics professor Justin Wolfers on social media, sharing a graph that showed the survey's findings.
As Philip Luck, a former deputy chief economist with the US State Department, told the CBC last month, Trump has been promising "millions and millions of jobs" will result from his tariff regime, but those promises are out of step with the reality of manufacturing in 2025.
"We do [manufacturing] now with very few workers, we do it in a very automated way," Luck told the CBC. "Even if we do increase manufacturing I don't know that we're going to increase jobs along with it."
The outlet noted that while the number of Americans employed in manufacturing peaked in 1979, the value of manufacturing production has continuously trended up since then.
Michael Hicks, director of the Center for Business and Economic Research at Ball State University, told the CBC that "no treasure trove of jobs" is likely to come out of Trump's tariffs.
The president "walked into an economy that was seeing the largest manufacturing production in American history," Hicks said. "That is really a testament to how productive American workers are, the quality of the technology, and capital investment in manufacturing."
But the rate of hiring at manufacturing firms is far below its 2024 level, said CAP, revealing the negative impact of Trump's tariff regime.
US Rep. Ro Khanna (D-Calif.) pointed to nearly 800 workers who lost their jobs in the manufacturing sector this week, including 120 whose company's sawmill closed in Darlington, South Carolina; 101 who worked at an electronics assembly plant for Intervala in Manchester, New Hampshire; and 170 whose sawmill positions were eliminated in Estill, South Carolina.
The US Supreme Court is expected to soon review Trump's tariffs after the Court of Appeals for the Federal Circuit ruled last week that many of them are illegal.
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Congressional Report Warns Trump Tariffs Could Stymie US Manufacturing for 'Years to Come'
Democrats on the Joint Economic Committee said that "continued uncertainty" caused by the president's policies could reduce manufacturing investments by nearly half a trillion dollars by the end of this decade.
Aug 18, 2025
US President Donald Trump's tariff whiplash has already harmed domestic manufacturing and could continue to do so through at least the end of this decade to the tune of nearly half a trillion dollars, a report published Monday by congressional Democrats on a key economic committee warned.
The Joint Economic Committee (JEC)-Minority said that recent data belied Trump's claim that his global trade war would boost domestic manufacturing, pointing to the 37,000 manufacturing jobs lost since the president announced his so-called "Liberation Day" tariffs in April.
"Hiring in the manufacturing sector has dropped to its lowest level in nearly a decade," the Democrats on the committee wrote. "In addition, many experts have noted that in and of itself, the uncertainty created by the administration so far could significantly damage the broader economy long-term."
"Based on both US business investment projections and economic analyses of the UK in the aftermath of Brexit, the Joint Economic Committee-Minority calculates that a similarly prolonged period of uncertainty in the US could result in an average of 13% less manufacturing investment per year, amounting to approximately $490 billion in foregone investment by 2029," the report states.
"The uncertainty created by the administration so far could significantly damage the broader economy long-term."
"Although businesses have received additional clarity on reciprocal tariff rates in recent days, uncertainty over outstanding negotiations is likely to continue to delay long-term investments and pricing decisions," the publication adds. "Furthermore, even if the uncertainty about the US economy were to end tomorrow, evidence suggests that the uncertainty that businesses have already faced in recent months would still have long-term consequences for the manufacturing sector."
According to the JEC Democrats, the Trump administration has made nearly 100 different tariff policy decisions since April—"including threats, delays, and reversals"—creating uncertainty and insecurity in markets and economies around the world. It's not just manufacturing and markets—economic data released last week by the Bureau of Labor Statistics showed that businesses in some sectors are passing the costs of Trump's tariffs on to consumers.
As the new JEC minority report notes:
As independent research has shown, businesses are less likely to make long-term investments when they face high uncertainty about future policies and economic conditions. For manufacturers, decisions to expand production—which often entail major, irreversible investments in equipment and new facilities that typically take years to complete—require an especially high degree of confidence that these expenses will pay off. This barrier, along with other factors, makes manufacturing the sector most likely to see its growth affected by trade policy uncertainty, as noted recently by analysts at Goldman Sachs.
"Strengthening American manufacturing is critical to the future of our economy and our national security," Joint Economic Committee Ranking Member Maggie Hassan (D-N.H.) said in a statement Monday. "While President Trump promised that he would expand our manufacturing sector, this report shows that, instead, the chaos and uncertainty created by his tariffs has placed a burden on American manufacturers that could weigh our country down for years to come."
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US Manufacturing Sector 'Sputtering' as Trump Tariffs Hit Consumers
"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," said Sen. Ron Wyden.
Aug 07, 2025
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."
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Manufacturing Activity Sinks 'Sharply' as GM Blames Trump Tariffs for Profit Drop
Experts had expected a key manufacturing index number to tick upward, which makes the massive drop in July a significant and unpleasant surprise.
Jul 22, 2025
A key manufacturing activity indicator unexpectedly plunged over the last month amid warnings from American automobile giant General Motors that U.S. President Donald Trump's tariffs are swallowing its profits.
The Wall Street Journal reports that the Fifth District Survey of Manufacturing Activity's index "sank sharply" in July and fell to -20, which was a drop from the -8 number posted by the index in June. Experts surveyed by the Journal had actually expected the index number to tick upward to -6, which makes the massive drop in July a significant and unpleasant surprise.
The index is a survey of more than five dozen manufacturing firms located in the mid-Atlantic region of the United States that asks them to report activities including shipments, new orders, and employment. A monthly number below zero indicates that activity in these realms has shrunk rather than grown over the last month, and the Journal notes that the index has been registering negative numbers for five months straight.
And the month-over-month dive in manufacturing activity isn't the only signal of trouble ahead for domestic manufacturing. General Motors revealed on Tuesday that its profits took a significant dent in the past quarter thanks in part to the Trump tariffs on vital components such as steel.
In all, GM's core profits fell by $3 billion on the quarter and it projected that its third-quarter profits could drop by as much as $5 billion as more tariffs take effect. Although GM is expanding some of its manufacturing in the U.S. to mitigate some of the impact of Trump's tariffs, that likely can only go so far when big tariffs are still being levied on the imported raw materials that the company needs to build cars.
GM's warning about tariffs comes just a day after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
Trump made raising tariffs on foreign products a key plank of his 2024 election campaign despite the fact that he also ran on lowering inflation, as tariffs historically have led to higher, rather than lower, prices.
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