How strong is US manufacturing, as Trump’s tariff deadline looms?
The global economy is on edge as United States President Donald Trump’s July 9 deadline looms for the imposition of double-digit tariffs on most trading partners.
On Monday, Trump announced tariffs on 14 countries, ranging from 25 to 40 percent. The targeted countries include close US allies like Japan and South Korea, as well as Laos, Myanmar, Bangladesh, Cambodia, Tunisia, South Africa, Malaysia, Kazakhstan, Thailand, Indonesia, Serbia and Bosnia and Herzegovina.And with only a few trade deals in place, his administration is expected to announce the imposition of new levies on many more countries. Trump and Treasury Secretary Scott Bessent on Sunday said those new tariffs would come into effect on August 1.
Trump’s initial April 2 “Liberation Day” announcement of across-the-board tariffs on countries around the world sent markets into a tailspin. Trump relented – temporarily – announcing a 90-day cessation on higher tariffs, while imposing a 10 percent baseline levy on all trading partners.
Now, some experts fear that higher tariffs, if imposed after July 9, could push the global economy into a recession.
Along with reducing the trade deficit, Trump’s argument for tariffs is that they will boost US manufacturing and protect jobs. He says tariffs will encourage US consumers to buy more US-made goods, increase the taxes raised and enhance investment in the US.
But what is the current state of manufacturing in the US, and how has it fared in recent months amid the economic churn stirred by Trump’s policies?Where are we now?
In a bid to revitalise US industry, Trump announced a $14bn investment on May 30, brokering a partnership between US Steel and Nippon Steel tipped to create 70,000 jobs, according to the White House.
The Trump administration has also highlighted investments announced by automakers, tech firms and chocolate companies, among others, as evidence of the return of manufacturing to US soil.
According to the US Bureau of Economic Analysis, manufacturing contributed $2.9 trillion to the economy in the first quarter of 2025, a 0.6 percent increase from the corresponding period in 2024. That places it behind only finance, professional and business services, and government as the largest sectors contributing to the US economy.
