Inside Trump’s manufacturing meltdown: Tariffs, job losses, and a $10 billion power grab
The U.S. manufacturing sector continues to struggle, with employment in the industry falling for nearly three years, underscoring President Trump’s challenge in trying to reindustrialize the economy through tariffs and protectionist measures.
According to ADP payroll data, U.S. manufacturing jobs dropped by 18,000 in November, the second-largest decline since October 2023. It also marked the fifth monthly decrease so far this year.
“Manufacturing employment has now fallen in 25 of the last 35 months,” noted The Kobeissi Letter, a market commentator.
The weakness extends beyond payroll numbers. The ISM Manufacturing Employment Index, which tracks hiring trends and is considered a leading indicator for the sector, declined to 44 in November.
On this index, readings below 50 indicate contraction. November marked the index’s tenth consecutive month in negative territory.
The ISM Purchasing Managers Index, which measures the overall health of the manufacturing sector, contracted again in November with a reading of 48.2.
The figures add to an increasingly grim outlook for the U.S. economy, with 1.2 million job cuts announced so far this year.
Trump faces tariff backlash
The latest ISM report carried several pointed reminders that U.S. manufacturers are feeling the strain of the tariff fight.
“Tariffs and economic uncertainty continue to weigh on demand,” an executive in the chemical products industry told the ISM survey.
Another, from the transportation sector, warned that companies are moving beyond temporary fixes.
“We are starting to institute more permanent changes due to the tariff environment,” the executive said. “This includes staff reductions, new guidance to shareholders, and additional offshore manufacturing that would have otherwise supported U.S. exports.”
For the Trump administration, this trend underscores a painful reality: its push to reindustrialize the economy is colliding with longstanding competitiveness challenges as manufacturing’s share of U.S. output continues to erode.
Even some supporters of tariffs and broader trade policy shifts warn that Trump is approaching the issue with a battering ram.
Rather than diagnosing the underlying problems, the president is “just throwing money around and imposing tariffs and taking these equity stakes and dismantling things,” said Mariana Mazzucato, a professor at University College London.
Mazzucato’s reference to equity stakes highlights the administration’s practice of spending billions to acquire ownership positions in private companies — a highly unusual step in the United States.
As The New York Times reported, the administration has already deployed around $10 billion through these national-security-justified investments, a pace that “shows no signs of slowing.”
The targeted sectors include semiconductors, nuclear energy, steel, and critical minerals.