Jay Allen is a fan of President Donald Trump, and voted for him on the belief that the Republican would cut taxes and trim regulations, helping his manufacturing business in northeast Arkansas.
But the tariffs at the core of Trump’s economic agenda have wreaked havoc on his company, Allen Engineering Corp, which makes industrial equipment used to install, finish and pave concrete. The import taxes have raised the costs of engines, steel, gearboxes and clutches made abroad that Allen needs to build power trowels that can sell for up to USD 100,000 each.
Allen's experience embodies a growing body of evidence that the tariffs that Trump said would help American factories are, in fact, squashing many of them. The problem could get worse as the administration scrambles to craft new tariffs to replace the emergency import taxes that the Supreme Court ruled illegal in February.
Allen said he ran his company at a loss in 2025 because of tariffs. His payroll has fallen to 140 workers from a peak of 205. To get by this year, he has hiked prices by 8 per cent to 10 per cent, even though that might mean fewer sales. “What's really sad is the unintended consequences of his tariffs are hurting manufacturing in our country,” said Allen. “Unfortunately, the working-class people are getting squeezed.”
Manufacturing jobs have declined during Trump's first year. Trump's core rationale for tariffs has been that they would force more factories to open in the US and would generate enough revenue to close federal budget deficits. But that hasn't materialised. Factories continue to shed workers, with 98,000 manufacturing jobs lost during Trump's first full 12 months back in the White House. American companies that foot the bill for tariffs are now suing the Trump administration for more than $130 billion in tariff refunds. Meanwhile, the federal deficit is projected to climb over the next decade.
The White House maintains that construction spending is high, more workers are being hired to build factories, new investments are being made and labour productivity in manufacturing is increasing — which could eventually fuel a factory revival.
Construction spending on factories has slipped during Trump's presidency, but the pace remains relatively high largely because of continuing work on Biden-era projects in Arizona, Texas and Idaho, said said Skanda Amarnath, executive director of the economic policy group Employ America.
But while the pharmaceutical drug sector might be expanding, the comments show no overall uptick in manufacturing because of Trump's tariffs. Uncertainty in tariffs has deterred investments. The flurry of announcements, reversals, exemptions and legal challenges — as well as Trump's decision to bypass Congress to impose tariffs — has made it difficult for smaller manufacturing companies to plan.
Equipment makers too have been hit hard by rising steel costs About 98 per cent of US manufacturing establishments have fewer than 200 workers, according to Census Bureau data, and don't have the kind of name-brand recognition or lobbying heft to minimise the damage from tariffs that big players like Apple, General Motors and Ford possess.
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