The U.S. manufacturing is trying to navigate the uncertainty brought on by President Donald Trump’s tariffs. U.S. manufacturing contracted for the ninth straight month in November, with factories facing slumping orders and higher prices for inputs as the drag from import tariffs persisted.
“The manufacturing sector continues to be weighed down by the unpredictable tariffs landscape,” said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets.
Since taking office again in January, President Donald Trump has implemented an aggressive tariff agenda aimed at reshoring production, protecting domestic industries, and reducing reliance on foreign-made industrial inputs. The centerpiece of this agenda has been a dramatic escalation of tariffs on steel, aluminum, and reportedly other goods.
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These measures were introduced under the justification of national security and “economic sovereignty,” reviving and expanding the tariff framework first used during Trump’s earlier term. By mid-2025, tariffs on imported steel and aluminum had been raised to around 50%.
The administration argues that these tariff increases are necessary to level the playing field for U.S. factories and to counter what it describes as unfair foreign subsidies, dumping practices, and dependency risks. Supporters say the higher tariffs have helped boost competitiveness for certain domestic producers of raw materials, especially in steel and aluminum.
These sectors, historically considered foundational for national defense and large-scale infrastructure projects, have seen modest improvements in pricing power and investment sentiment. The White House maintains that these measures will encourage long-term reshoring, increase factory investment, and secure American supply chains from geopolitical shocks.
The Institute for Supply Management (ISM) survey on Monday also showed some manufacturers in the transportation equipment industry linking layoffs to President Trump’s sweeping duties, saying they were “starting to institute more permanent changes due to the tariff environment.” They added “this includes reduction of staff, new guidance to shareholders and development of additional offshore manufacturing that would have otherwise been for U.S. export.”
The ongoing uncertainty created by President Trump’s tariffs has left U.S. manufacturing navigating a challenging landscape. Certain sectors, such as steel and aluminum, have seen modest gains in pricing power. The administration frames the measures as necessary to protect domestic industries, bolster investment, and encourage reshoring.
Trump has defended the tariffs as necessary to protect domestic manufacturing, though economists have argued it is impossible to restore the industry to its former glory because of structural issues, including worker shortages.
“We can see no sign in this report of a surge in manufacturing in the United States since the tariff regime was unveiled last spring,” said Carl Weinberg, chief economist at High Frequency Economics. “The manufacturing sector is sick.”
Only four industries in the ISM survey, including computer and electronic products, and machinery reported growth.