US Manufacturing Hit by 'Operational Shock' From Trump Tariffs Pushing Costs Up
Manufacturing activity slowed in February while costs increased and employment contracted as President Trump's tariff policies weighed on the sector. The Institute for Supply Management's manufacturing PMI registered a reading of 50.3 in February, down from January's 50.9 reading and below economists' expectations. Meanwhile, the prices paid index surged to a reading of 62.4, up from 54.9 the month prior and its highest level since July 2022.
- The escalating trade tensions between the US and other countries may be forcing manufacturers to rethink their global supply chains, potentially leading to a more localized and resilient production capacity.
- How will the impact of Trump's tariffs on international trade partnerships affect the competitiveness and profitability of American businesses in the long term?