How strong is US manufacturing, as Trump’s tariff deadline looms?
Summary
The United States plans to increase tariffs on 14 countries, with tariffs ranging from 25 to 40 percent, starting on August 1. These new tariffs are a part of President Trump’s strategy to boost U.S. manufacturing and reduce the trade deficit, but some worry they could hurt the global economy. Meanwhile, U.S. manufacturing has been declining, with the manufacturing index showing contraction for four months.Key Facts
- The U.S. plans to impose tariffs on 14 countries, including allies like Japan and South Korea.
- These tariffs range from 25 to 40 percent and are set to begin on August 1.
- The tariffs are aimed at reducing the trade deficit and boosting U.S. manufacturing.
- U.S. manufacturing contributed $2.9 trillion to the economy in early 2025.
- Manufacturing makes up about 9.7 percent of the U.S. economy, down from over 25 percent in the 1970s.
- The Institute for Supply Management’s PMI was 49 percent in June, showing manufacturing is contracting.
- The PMI had been above 50, indicating growth, at the start of 2025 but fell below 50 in March.
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