U.S. Manufacturing Is in Retreat and Trump’s Tariffs Aren’t Helping
Wall Street Journal
Feb-03-2026
The manufacturing boom Trump promised would usher in a golden age for America is going in reverse. After years of economic interventions by the Trump and Biden administrations, fewer Americans work in manufacturing than any point since the pandemic ended.
Manufacturers shed workers in each of the eight months after Trump unveiled “Liberation Day” tariffs, according to federal figures, extending a contraction that has seen more than 200,000 roles disappear since 2023.
An index of factory activity tracked by the Institute for Supply Management shrunk in 26 straight months through December, but showed a January uptick in new orders and production that surprised analysts. The Census Bureau estimates that manufacturing construction spending, which surged with Biden-era funding for chips and renewable energy, fell in each of Trump’s first nine months in office.
The gradual slowdown is in some ways a continuation of decadeslong trends that pulled factory jobs overseas and helped empty out Midwestern cities. In an industry where capital plans and construction timelines extend years into the future, turnarounds also don’t happen overnight.
Feb-03-2026
The manufacturing boom Trump promised would usher in a golden age for America is going in reverse. After years of economic interventions by the Trump and Biden administrations, fewer Americans work in manufacturing than any point since the pandemic ended.
Manufacturers shed workers in each of the eight months after Trump unveiled “Liberation Day” tariffs, according to federal figures, extending a contraction that has seen more than 200,000 roles disappear since 2023.
An index of factory activity tracked by the Institute for Supply Management shrunk in 26 straight months through December, but showed a January uptick in new orders and production that surprised analysts. The Census Bureau estimates that manufacturing construction spending, which surged with Biden-era funding for chips and renewable energy, fell in each of Trump’s first nine months in office.
The gradual slowdown is in some ways a continuation of decadeslong trends that pulled factory jobs overseas and helped empty out Midwestern cities. In an industry where capital plans and construction timelines extend years into the future, turnarounds also don’t happen overnight.
