Trump's Tariffs Hurt Manufacturers, Not Help Them

Tariffs raise costs for U.S. companies, leading to job losses and lower profits

Mar. 18, 2026 at 8:06am

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President Trump's tariffs, which were intended to help American manufacturers, have instead hurt many companies like Jay Allen's industrial equipment firm in Arkansas. The tariffs have raised costs for imported parts and materials, forcing Allen to operate at a loss and cut his workforce. Factories across the U.S. have continued to shed jobs under Trump, contrary to his promises that the tariffs would spur a manufacturing revival.

Why it matters

Trump's tariff policies were a key part of his economic agenda, but they have failed to deliver the promised benefits for U.S. manufacturers. Instead, the tariffs have squeezed many small and medium-sized companies that rely on imported components, hurting their competitiveness and profitability. This could have broader implications for the economy if the trend continues.

The details

The tariffs have raised the costs of engines, steel, gearboxes and other imported parts that Allen Engineering needs to build its industrial equipment. To cope, Allen has had to hike prices by 8-10%, which could mean fewer sales. The company ran at a loss in 2025 due to the tariffs, and its payroll has fallen from 205 workers to 140. Other manufacturers have faced similar challenges, with 98,000 manufacturing jobs lost in Trump's first 12 months back in the White House.

  • In March 2026, Trump's tariffs had been in place for several years.
  • The Supreme Court ruled the emergency tariffs illegal in February 2026, leading the administration to scramble to craft new tariff policies.

The players

Jay Allen

Owner of Allen Engineering Corp., a manufacturer of industrial equipment in northeast Arkansas.

Donald Trump

The former U.S. president who implemented the tariffs as part of his economic agenda.

Skanda Amarnath

Executive director of the economic policy group Employ America, who has analyzed the impact of the tariffs.

Joseph Steinberg

Economist at the University of Toronto who has researched the potential effects of the tariffs.

Glen Calder

President of Calder Brothers, a manufacturer of equipment to pave asphalt, which has been hurt by the steel tariffs.

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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.

“It takes time to get production online, and therefore it will be some more time before we fully materialize the benefits of the president's policies.”

— Pierre Yared, Acting Chairman, White House Council of Economic Advisers

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

— Skanda Amarnath, Executive Director, Employ America

What’s next

The White House is expected to announce new tariff policies to replace the emergency tariffs ruled illegal by the Supreme Court.

The takeaway

Trump's tariffs, intended to boost U.S. manufacturing, have instead hurt many small and medium-sized companies that rely on imported components. This has led to job losses and lower profits, undermining the administration's economic agenda and raising questions about the effectiveness of its trade policies.