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 price gains decelerated to 63.7 from 64.8, while manufacturing production slipped back into contraction territory in the U.S. manufacturing sector.
- Amid an uneven rollout of trade measures, manufacturers said Trump administration trade policy and supplier surcharges pushed input costs higher and undermined hiring.
- Survey internals show production slipped into contraction, employment remains weak at 43.8%, prices paid eased slightly, and order backlogs fell, reflecting ongoing cost pressures and subdued hiring.
- This leaves policymakers facing tariff uncertainty that delays investments, while the U.S. Federal Reserve appears poised to cut rates despite trade policy headwinds for U.S. businesses and manufacturers.
- Internationally, Brazil's President Lula called a BRICS meeting for September 8th, while Japanese Prime Minister Ishiba and India's Trade Minister pursue measures amid legal uncertainty from a U.S. appeals court ruling on tariffs.
19 Articles
19 Articles
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…
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