US Manufacturing Sector NAICS 31-33

Oct 20, 2025 - Tariffs Raise Costs, Shrink Margins

• The complex web of tariffs imposed by the second Trump administration has infiltrated most segments of the US manufacturing technology supply chain, impacting everything from pricing and sourcing to investment timelines, a recent Association For Manufacturing Technology’s (AMT) survey of 80 manufacturing technology executives found. Reciprocal tariffs, Section 301 tariffs, 50% levies on steel and aluminum, and a pending Section 232 investigation of robotics and industrial machinery imports have added layers of complexity to pricing, sourcing, and production planning for US manufacturers across most of the supply chain, per AMT. The survey found 91% of respondents reported increased landed costs (the total cost of getting a product from the factory to a customer’s door) due to tariffs; 85% raised customer prices to offset those costs; and 85% experienced margin compression on imported machinery or components. Notably, only 9% of those surveyed reported switching suppliers.
• The Commerce Department in September launched an investigation to determine the effects on national security of imports of robotics and industrial machinery, according to a notice in the Federal Register. The probe, opened under Section 232 of the Trade Expansion Act, will examine the national security implications of imports of a wide array of industrial equipment, including robots and programmable, computer-controlled mechanical systems, turning and milling machines, grinding and deburring equipment, and industrial stamping and pressing machines. Other items included are automatic tool changers, jigs and fixtures, and machine tools for cutting and welding. The department is seeking information on domestic production and demand, the role and risks of major foreign exporters, and the impact of foreign government subsidies and trade practices on the robotics and industrial machinery markets.

• The Environmental Protection Agency in September released a sweeping proposal to eliminate the Greenhouse Gas Reporting Program (GHGRP), the nation’s repository of annual carbon emissions data from more than 8,000 industrial facilities, Manufacturing Dive reports. Regulated entities in the program include a range of facilities in manufacturing, oil and gas, and waste. EPA Administrator Lee Zeldin, citing President Trump’s anti-climate executive actions, described the GHGRP as unnecessary bureaucracy and estimated that ending the program could save businesses up to $2.4 billion in compliance costs over the next decade. The EPA said that other data-gathering efforts, such as the Manufacturing Energy Consumption Survey that tracks fuel use in that sector, will continue. The agency will publish the emissions proposal in the Federal Register and open a 47-day public comment period before finalizing the rule.
• Producer prices for all US manufacturing industries rose 1.9% in August compared to a year ago, after slipping 0.8% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by manufacturing companies shrank 0.7% year over year in August, while average sector wages rose 3.9% over the same period to $28.94 per hour, down $0.09 from their high in July, BLS data show. The US manufacturing sector lost 12,000 jobs in August, continuing a downward trend despite Trump administration policies aimed at bolstering the sector, according to the BLS.