Manufacturing Slump: Tariffs Take a Toll on U. S. Factories

U. S. factories are in a tough spot. For the sixth month in a row, manufacturing has shrunk. The main culprit? Tariffs. These import taxes are making it hard for factories to do their job. Some say things are worse now than during the Great Recession. The Institute for Supply Management (ISM) shared some grim news. Their survey showed that manufacturing is still in a slump. The PMI, a key measure of factory health, is below 50. That means factories are producing less, not more. Economists thought it would be a bit better, but hopes were dashed. Tariffs are a big part of the problem. They make it expensive to get parts and materials. Some factories say it's now harder to make things in the U. S. because of these taxes. President Trump put these tariffs in place to help U. S. factories, but many are struggling instead. Building new factories isn't happening much either. Spending on construction dropped in July. It's down nearly 7% from last year. A court recently said most of Trump's tariffs are illegal. That's added more uncertainty for businesses.Some industries are doing okay. Textile mills and primary metals reported growth. But many others are struggling. Paper products, machinery, and electronics are among those feeling the pinch. Tariffs are making it hard to plan and schedule production. Hiring is also down. Factories aren't adding many new jobs. Layoffs and freezing open positions are common. This shows that companies don't see better times coming soon. Delivery times are getting longer, and prices for materials are still high. But it's not all bad news. Factories are spending more on AI and tech. This is helping to balance out some of the tariff troubles. Spending on these products grew quickly in the second quarter. Economists think this trend will continue. Still, the future is uncertain. Some tax breaks might help later, but for now, factories are waiting to see what happens. The tariffs are causing a lot of headaches, and it's not clear when things will get better.