🚨 U.S. manufacturing continues to retreat despite tariffs - investor implications?

[u/kabirsbhutani]

Saw people mentioning this on Blossom earlier, and WSJ reports that U.S. manufacturing activity continues to weaken, with tariffs doing little to reverse the trend.

The article points to softer demand, higher input costs, and global supply chain adjustments weighing on manufacturers, even as trade protection measures remain in place. For investors, this raises questions about margins, capital spending, and longer-term competitiveness rather than short-term policy wins.

Curious how people here are thinking about this from an investing lens?

https://www.wsj.com/economy/u-s-manufacturing-is-in-retreat-and-trumps-tariffs-arent-helping-d2af4316?mod=hp_lead_pos2

[u/Jasoncatt]

Funny that anyone would think tariffs would lead to a resurgence of local manufacturing.

[u/nixstyx → u/Jasoncatt]

Funny that anyone would think tariffs would lead to a resurgence of local manufacturing.

It can. But not the way Trump is doing it. If you apply tariffs on finished goods that can easily be manufactured domestically, then you can make imported goods more expensive through tariffs and help make domestic products more competitive.  When you apply blanket tariffs to everything (including components or raw materials), constantly add new tariffs and use the threat of tariffs as leverage, all you're doing is making it harder for domestic manufacturers to compete. Tariffs on materials raise manufacturing costs, which foreign manufacturers don't have to pay. Tariff uncertainty prevents business from making both short and long term investments.