Why the promised manufacturing boom from tariffs remains elusive
Jan 15, 2026
President Donald Trump’s sweeping tariffs were billed as the catalyst for a U.S. manufacturing revival, but employment data so far tells a different story, the Washington Post writes.
Since April, factory payrolls have fallen every month, leaving the sector with about 72,000 fewer jobs than whe
n the president promised factories would “roar back.” Economists say the tariffs are raising costs for companies that rely on imported components, squeezing margins and slowing hiring, particularly at small and midsize manufacturers.
Auto, semiconductor and other advanced manufacturers have been among the hardest hit.
At the same time, high interest rates and a post-pandemic shift in consumer spending away from goods toward services are dampening demand.
While factory output has ticked up and companies continue to announce new plant investments, analysts warn that job losses may accelerate in coming quarters as firms work through excess inventories and delayed capital projects. For now, the manufacturing boom Trump touted remains elusive.
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