The latest Manufacturing Business Outlook Survey from the Federal Reserve Bank of Philadelphia paints a grim picture for America’s industrial economy. The index for current general activity fell sharply to –12.8 in the last month, a steep drop that signals a broad contraction across the manufacturing sector.
The report indicates that Trump’s tariffs and trade instability are increasing input costs, reducing demand, and slowing hiring, all of which are taking a toll on businesses across the region. Nearly half of firms reported paying higher prices for materials, while many say uncertainty surrounding tariffs and trade policy is stalling investments and job growth.
Even as the Trump administration insists that new trade deals are just around the corner, American businesses and working families are paying the price today. The Federal Reserve’s Beige Book and the Goldman Sachs analysis released this week both confirm that tariffs are driving prices higher and hurting the very workers Trump promised to help.
“Donald Trump lied to the workers and families that are now paying the price for his economic chaos. Wages have flatlined even as grocery and energy bills climb, and too many people cannot find steady work because employers are frozen by trade chaos and economic uncertainty. Farmers are losing markets to foreign competitors while everyday households shoulder higher costs,” said American Bridge 21st Century spokesperson Brandon Weathersby. “Meanwhile, Trump lounges on the White House patio with wealthy donors and brags about a two-hundred-million-dollar ballroom that he is building for his rich friends. He’s not working to bring down costs for families; he won’t even negotiate with Democrats in good faith to fund health care for 2 million Americans and reopen the government. So far, his entire second term is a spectacle at the expense of working people.”
Published: Oct 16, 2025 | Last Modified: Nov 13, 2025