US manufacturing is experiencing a sharp decline due to President Donald Trump’s tariff strategy. The Institute for Supply Management’s May report shows that 57% of the manufacturing sector’s GDP contracted, the deepest contraction since April. This trend is expected to continue, with the Purchasing Managers Index falling to 48.5%, below 50%.
Tariffs are being felt by manufacturers, who are struggling to adapt to the uncertainty and changes in policy. “Production is frozen,” said Susan Spence, chair of the Institute for Supply Management’s Manufacturing Business Survey Committee. “Growth can’t resume until we get clarity on tariff policy.”
The Trump administration has set a deadline for countries to give the US their best and final tariff offers, which may bring some resolution to the uncertainty surrounding tariffs. However, experts warn that manufacturing could continue to contract in 2025.
Despite the negative impact on manufacturers, the broader economy is still growing, with service-providing industries expected to keep expanding and help avoid a recession.
Source: https://eu.usatoday.com/story/graphics/2025/06/03/trumps-tariffs-us-manufacturers-response/83990331007