US manufacturers are facing a new set of challenges reminiscent of the COVID-19 pandemic era. With tariffs causing disruptions in global supply chains, factories are reporting longer delivery times for critical inputs, rising material prices, and potential shutdowns of assembly lines.
The situation is worse than initially expected, with supplier delivery times being the slowest in two years, according to a recent sector survey by the Institute for Supply Management. Companies are struggling to keep up with manufacturers’ accelerated requests to import goods before tariffs take effect, leading to delays at customs and disputes over who should pay the tariff bill.
Experts warn that this is an economic anomaly, as supplier delays typically occur when manufacturers are racing to meet high demand. However, manufacturers are experiencing a new wave of weak demand conditions, yet lead times are getting longer. The problem persists even if tariffs vanish, as it takes time for supply chains to get “knotted up” and rectify.
The situation is particularly dire in the automotive sector, where US automakers face shortages of rare earth elements and magnets necessary for critical components. China’s crackdown on exports of these materials has left the US with no alternative, exacerbating the crisis.
As a result, consumers may soon find themselves facing fewer options on shelves due to global supply chain disruptions caused by trade wars and tariffs. The impact of this situation will be felt across industries, highlighting the need for policymakers to address the ongoing challenges in global supply chains.
Source: https://www.axios.com/2025/06/04/tariffs-trump-manufacturers-covid-supply-chain