Washington, D.C. — A new analysis from the Center for American Progress finds that the Trump administration’s sweeping tariff agenda has failed to revive American manufacturing and has instead coincided with widespread blue-collar job losses, falling factory investment, and rising costs for American households. Since President Donald Trump announced his “Liberation Day” tariffs in April 2025, the United States has lost 89,000 manufacturing jobs. That is equivalent to the closure of more than 2,800 average-size manufacturing establishments nationwide.
Nearly one year after “Liberation Day,” the administration’s trade agenda has failed by three key measures: 1) The trade deficit has reached a record high, 2) manufacturing employment has declined, and 3) working Americans are facing higher costs and fewer opportunities.
“The Trump administration promised that its sweeping tariffs would bring manufacturing roaring back,” said Ryan Mulholland, senior fellow at the Center for American Progress and co-author of the analysis. “Instead, we’re seeing manufacturing jobs disappearing, investment in new factories falling, and American families paying higher prices for everyday goods. The Trump administration owns these failures.”
“Manufacturing jobs anchor communities across the country, especially in rural areas where a single factory can support an entire local economy,” said Kennedy Andara, policy analyst at the Center for American Progress and co-author of the analysis. “When these jobs disappear, the consequences ripple far beyond the factory floor.”
CAP’s analysis highlights how:
- Manufacturing and logistics jobs are declining. In the 10 months following the “Liberation Day” tariffs, the United States lost 89,000 manufacturing jobs and 123,700 jobs in transportation and warehousing—industries particularly exposed to tariffs and trade disruptions.
- Blue-collar job losses are widespread. In 45 states, blue-collar job creation since the tariff announcement has fallen below the pace achieved during the Biden administration. Nationally, the labor market has shed 189,600 blue-collar jobs since “Liberation Day.”
- Manufacturing investment is falling sharply. Manufacturing construction declined 14 percent from December 2024 to December 2025, reversing the surge in factory investment that followed the passage of the CHIPS and Science Act and the Inflation Reduction Act.
- Tariffs are raising costs for families. Research finds the average household paid roughly $1,700 in tariffs from February 2025 to January 2026, while more than 65 percent of Americans say tariffs have made everyday goods less affordable.
- The trade deficit reached a record high in 2025. Despite the administration’s justification for tariffs, the U.S. trade deficit in goods reached a record high in 2025, with many importers simply purchasing goods elsewhere instead of reshoring manufacturing to the United States.
Read the column: “One Year After ‘Liberation Day,’ American Workers Are Feeling the Negative Effects of the Trump Administration’s Tariffs” by Ryan Mulholland and Kennedy Andara.
For more information or to speak with an expert, please contact Christian Unkenholz at [email protected].