In the long run, US President Donald Trump's tariffs may increase the competitiveness of American manufacturers. In the short run, however, they only lead to higher costs for companies sourcing materials from abroad.
The Wall Street Journal (WSJ) reported that import tariffs imposed by US President Donald Trump on foreign goods have led to problems in the industrial sector and job losses in the US.
It is noted that although the tariffs may increase the competitiveness of American manufacturers in the future, in the short run they only lead to higher costs for companies sourcing materials from abroad. This forces companies to raise prices and compete for raw materials. The newspaper cited the example of steelmaker Insteel Industries, which has been forced to buy raw materials from other countries due to a shortage of domestic metal. High tariffs on the metal lead to higher costs. The company's CEO noted that “the company has very few products“ that would benefit from the tariffs.
The newspaper also notes that since Trump first imposed the tariffs in April 2025, manufacturers have been forced to cut jobs every month. This has only exacerbated the trend, the WSJ said. According to the newspaper, since 2023, employers in the manufacturing sector have cut more than 200,000 positions. The sector is currently employing the fewest Americans since the end of the coronavirus pandemic.
The New York Times previously reported that tariffs will bring the United States an estimated $287 billion in revenue in 2025, but these funds are paid into the national budget by importers, most of which are American companies. Trump, in turn, estimated the revenue from tariffs at $600 billion.
On April 2, 2025, the American leader announced the imposition of tariffs on products from 185 countries and territories. Later, the president changed the tariff rate for imports from a number of countries. On August 29, the US Court of Appeals for the District of Columbia found that Trump did not have the authority to impose many of the tariffs he announced. On September 4, the US administration filed a petition with the Supreme Court to overturn the order.