Trump's Tariffs Hurt Manufacturers Instead of Helping

Tariffs raise costs for companies like Allen Engineering, leading to job cuts and losses

Mar. 18, 2026 at 11:18pm

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President Trump's tariffs, which were meant to boost American manufacturing, have instead hurt many factories like Allen Engineering in Arkansas. The tariffs have raised costs for imported parts and materials, forcing companies to raise prices, cut jobs, and operate at a loss. Despite the White House's claims of a manufacturing renaissance, the data shows factories continue to shed workers and the federal deficit has grown under Trump's trade policies.

Why it matters

Trump's tariffs were a central part of his economic agenda, but the unintended consequences are now hurting the very manufacturers he aimed to help. This highlights the challenges of using tariffs to drive domestic manufacturing, as smaller companies struggle to adapt to the uncertainty and increased costs. It also raises questions about the administration's ability to craft effective trade policies that support American workers.

The details

Allen Engineering, which makes industrial equipment, has had to raise prices 8-10% and cut its workforce from 205 to 140 workers due to the higher costs of imported engines, steel, and other components needed for its products. Other manufacturers like Calder Brothers have also been hit hard by the steel tariffs, with prices jumping 25% before the tariffs even took effect. Overall, the U.S. has lost 98,000 manufacturing jobs during Trump's first full 12 months back in the White House, and companies are now suing for over $130 billion in tariff refunds.

  • In March 2025, Trump imposed tariffs that raised costs for Allen Engineering.
  • In 2025, Allen Engineering ran its company at a loss due to the tariffs.
  • In February 2026, the Supreme Court ruled that some of Trump's emergency import taxes were illegal.

The players

Jay Allen

The owner of Allen Engineering Corp., a manufacturing company in northeast Arkansas that makes industrial equipment.

Donald Trump

The former president of the United States who implemented tariffs as part of his economic agenda.

Glen Calder

The president of Calder Brothers, a company in South Carolina that makes equipment to pave asphalt and was impacted by the steel tariffs.

Skanda Amarnath

The executive director of the economic policy group Employ America, who analyzed the impact of Trump's policies on manufacturing.

Joseph Steinberg

An economist at the University of Toronto who researched the potential impact of tariffs on manufacturing employment.

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What they’re saying

“What's really sad is the unintended consequences of his tariffs are hurting manufacturing in our country. Unfortunately, the working-class people are getting squeezed.”

— Jay Allen, Owner, Allen Engineering Corp.

“You don't get the sense that there is this new manufacturing renaissance under way.”

— Skanda Amarnath, Executive Director, Employ America

“It would take a decade for manufacturing employment to rise above where it was before tariffs were enacted.”

— Joseph Steinberg, Economist, University of Toronto

What’s next

The administration is scrambling to craft new tariffs to replace the emergency import taxes that the Supreme Court ruled illegal in February.

The takeaway

Trump's tariffs, intended to boost American manufacturing, have instead hurt many factories by raising their costs and forcing them to cut jobs and operate at a loss. This highlights the unintended consequences of using tariffs as a trade policy tool, and the challenges smaller manufacturers face in adapting to the uncertainty created by the administration's trade actions.