U.S. Manufacturing Contracts for 9th Month, Tariffs Blamed
Update: 2025-12-01
Description
U.S. manufacturing faces a ninth consecutive month of contraction, with factories grappling with fewer orders and soaring material costs due to persistent import tariffs. The Institute for Supply Management survey reveals that some manufacturers are making permanent changes, such as reducing staff and exploring offshore manufacturing options. President Trumps tariffs on vehicle and auto parts imports, along with the recent twenty-five percent duty on medium and heavy-duty trucks and parts, are exacerbating the situation. The manufacturing index has dropped to forty-eight point two, indicating contraction in the sector, which accounts for ten percent of the U.S. economy. Despite a potential uptick due to the end of the government shutdown, factory activity is expected to remain subdued, underscoring the substantial impact of trade policies on American businesses and workers.
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