Tariffs Are Squeezing US Manufacturing
The US manufacturing sector faced its sixth consecutive contraction in August 2025 due to tariff uncertainties and higher costs despite growth in new orders, ISM data showed.
- On Tuesday, the Institute for Supply Management reported U.S. manufacturing PMI rose to 48.7 from 48.0 but remained below 50, marking six consecutive months of contraction.
- Amid an uneven rollout of trade measures, manufacturers said Trump administration trade policy and tariff uncertainty raised input costs and restrained hiring.
- Survey internals show the New Orders index jumped to 51.4, the first expansion since January, while the Employment index stayed weak around 43.8, underscoring subdued factory hiring.
- This leaves policymakers facing a fragile manufacturing recovery amid a $103.6 billion U.S. goods trade deficit, reduced 2025 financial expectations, and tariff-driven investment delays for U.S. businesses and manufacturers.
- Internationally, Brazil's President Lula called a virtual BRICS meeting for September 8th, while Japanese Prime Minister Ishiba and India's Trade Minister pursue measures and talks over U.S. tariffs amid legal uncertainty from a recent U.S. appeals court ruling.
22 Articles
22 Articles
American manufacturing needs relief from Trump's tariffs
The data are becoming impossible to ignore: American manufacturers desperately need relief from the very same tariffs that the Trump administration incoherently believes are helping American manufacturers. That conclusion is evident from both results of a new survey of manufacturing companies' CEOs and new economic data showing that manufacturing activity has declined for six consecutive months—the sort of slide over two economic quarters that t…
Tariffs are squeezing US manufacturing
U.S. manufacturing continues to shrink.A new report out Tuesday showed the industrial manufacturing sector contracted in August for the sixth consecutive month.The report comes as President Donald Trump's new tariffs ripple through the global economy."The manufacturing sector is very acutely exposed to the direct and indirect effects of tariffs," said economist Noah Yosif.In the new report, one executive at a company that makes computer and elec…
U.S. Factories Plan Big But Deliver Small in August While Americans Lose Confidence
Tuesday’s U.S. economic data tells a clear story: American businesses face a gap between ambition and reality. The S&P Global Manufacturing PMI reached 53.0 in August, signaling expansion, but the more trusted ISM Manufacturing PMI remained at 48.7, marking six straight months of contraction. New factory orders rose to 51.4, the best reading in months, […]
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