At the beginning of his second term, President Donald Trump launched an ambitious strategy centered on imposing steep tariffs aimed at encouraging companies to bring manufacturing operations back to the United States and reduce dependence on China. However, as the year concludes, the outcomes have been underwhelming. Data from the Federal Reserve indicates that while industrial output has risen by 1.6% since the end of 2024, it still remains below 2023 levels. Over the same period, the sector has shed approximately 54,000 jobs, with employment declining nearly every month. Additionally, the surge in factory construction spurred by Biden-era incentives for semiconductors and clean energy has slowed significantly. According to Census Bureau reports, capital spending by manufacturers peaked the previous year and then dropped consecutively for seven months through August, signaling a cooling in investment momentum. The challenges highlight the complexity of reshaping global supply chains through trade policy alone.
— news from Bloomberg.com
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US Struggles to Revive Manufacturing While Downsizing China’s Role
President Donald Trump at the start of his second term embarked on what amounted to a bold experiment, using historically high tariff rates to try and force companies to reshore production to the US. As the year winds down, the initial results aren’t looking quite so hot. n nUS manufacturing has lost jobs almost every month this year, with payrolls down a total 54,000 since the end of 2024. While production is up 1.6% in that time, it’s still below 2023 levels, Federal Reserve data show. And a factory-building boom triggered by Biden-era legislation subsidizing semiconductors and renewable-energy has waned: Construction spending by manufacturers topped out last year and fell seven straight months through August, Census Bureau figures show.