• Latest
  • Trending
  • All
  • Industry
  • Compliance
  • Global Trade
  • Industry
  • Sustainability & Ethics
  • Video
  • Security & Risk
US-Manufacturing-Contracts-in-March-Amid-Tariff-and-Inflation-Concerns

US Manufacturing Contracts in March Amid Tariff and Inflation Concerns

04/01/2025
ATLANTIS LOGISTICS (DRC) SARL Strengthens DRC’s Position in Global Trade Through Reliable Logistics Solutions

ATLANTIS LOGISTICS (DRC) SARL Strengthens DRC’s Position in Global Trade Through Reliable Logistics Solutions

07/30/2025
Trezix: Transforming Global Trade with AI-Driven Orchestration

Trezix Software Pvt Ltd Nominated for Go Global Awards 2025

07/30/2025
Trezix: Transforming Global Trade with AI-Driven Orchestration

Trezix: Transforming Global Trade with AI-Driven Orchestration

07/30/2025
U.S. and China Conclude Stockholm Talks as Tariff Pause Remains in Effect

U.S. and China Conclude Stockholm Talks as Tariff Pause Remains in Effect

07/30/2025
DTI Sees Tariff Adjustment as Positive Step for Philippines

DTI Sees Tariff Adjustment as Positive Step for Philippines

07/30/2025
Charts and graphs showing business items and U.S. tariff shifts. - Supply Chain News

Analysts Monitor U.S. Tariff Shifts Amid Trade Talks

07/30/2025
Wall Street Eases Concerns as U.S. Tariff Levels Stabilize Below Expectations

Wall Street Eases Concerns as U.S. Tariff Levels Stabilize Below Expectations

07/30/2025
Trump Proposes Global Baseline Tariff Rate of 15–20 Percent

Trump Proposes Global Baseline Tariff Rate of 15–20 Percent

07/30/2025
1FC Invest Enterprises Nominated for Go Global Awards 2025

1FC Invest Enterprises Expands Financial Inclusion Across India with Tech-Driven Legacy Planning Solutions

07/29/2025
1FC Invest Enterprises Nominated for Go Global Awards 2025

1FC Invest Enterprises Nominated for Go Global Awards 2025

07/29/2025
M.A.R.S.A.T S.A: Advancing Romania’s Energy Infrastructure with Turnkey Engineering Solutions

M.A.R.S.A.T S.A. Nominated for the Go Global Awards 2025

07/29/2025
M.A.R.S.A.T S.A: Advancing Romania’s Energy Infrastructure with Turnkey Engineering Solutions

M.A.R.S.A.T S.A: Advancing Romania’s Energy Infrastructure with Turnkey Engineering Solutions

07/29/2025
supplychainreport
Wednesday, July 30, 2025
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars
No Result
View All Result
supplychainreport
No Result
View All Result

US Manufacturing Contracts in March Amid Tariff and Inflation Concerns

by Giezel Garcia
04/01/2025
in Tariffs & Duties

The U.S. manufacturing sector contracted in March after two months of growth, while inflation at the factory level reached its highest level in nearly three years. Concerns over tariffs on imported goods have contributed to uncertainty in the sector.

According to the Institute for Supply Management (ISM), the manufacturing Purchasing Managers’ Index (PMI) fell to 49.0 in March from 50.3 in February. A PMI reading below 50 indicates contraction in the sector, which represents approximately 10.2% of the U.S. economy. Economists polled by Reuters had forecast a decline to 49.5.

YOU MAY ALSO LIKE

U.S. and China Conclude Stockholm Talks as Tariff Pause Remains in Effect

DTI Sees Tariff Adjustment as Positive Step for Philippines

Manufacturing had shown signs of recovery earlier this year following a downturn caused by the Federal Reserve’s interest rate hikes in 2022 and 2023, which were implemented to control inflation. However, recent trade policies, including tariff measures, appear to have impacted growth.

The U.S. administration has introduced or proposed a series of tariffs on imports from various countries, citing trade policy objectives. These measures include tariffs on steel and aluminum imports, as well as a 25% levy on imported cars and light trucks. Additional tariff policies are expected to be announced.

Economic Impact and Inflationary Pressures

Economists have raised concerns about the potential economic impact of these tariffs, noting that increased import duties could contribute to higher costs for businesses and consumers. The Federal Reserve has maintained its current interest rate policy while assessing the potential effects of tariffs on overall economic activity.

Goldman Sachs has revised its recession probability forecast to 35% over the next 12 months, up from 20%, citing declines in consumer and business confidence. Economists have also highlighted the reliance of domestic manufacturers on imported raw materials, warning of potential supply chain disruptions.

The ISM survey’s new orders sub-index declined to 45.2 in March, the lowest reading since May 2023, down from 48.6 in February. Factory production also saw a decline. Additionally, the measure of prices paid by manufacturers for inputs increased to 69.4 from 62.4 in February, reaching its highest level since June 2022. This suggests that inflationary pressures in the manufacturing sector may persist.

Supply Chain and Employment Trends

Supplier delivery performance remained slow in March, with the survey’s supplier deliveries index decreasing to 53.5 from 54.5 in February. A reading above 50 indicates slower deliveries. The flow of imports also declined, indicating a potential reduction in businesses stockpiling materials in anticipation of higher costs due to tariffs.

Employment in the manufacturing sector continued to decline, with the employment index falling to 44.7 in March from 47.6 in February. Analysts suggest that job losses may continue if businesses face increased costs and supply chain disruptions.

As trade policies continue to evolve, the manufacturing sector will be closely monitored for further economic impacts, particularly in relation to inflation, employment, and supply chain stability.

Stay current with supply chain report news at The Supply Chain Report. For international trade resources, visit ADAMftd.com.

#USManufacturing #EconomicSlowdown #TradeTariffs #InflationImpact #SupplyChainTrends #IndustrialProduction #ManufacturingDecline

ShareTweet

Subscribe Our Newsletter

Share Your News

Whether it’s a groundbreaking achievement, a heartwarming tale, or an insightful perspective, we want to hear it. Share your news with us, and let’s amplify your voice in the digital symphony of stories.

Submit

A man is riding a bike on a hill.

The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

Each day, we bring you cutting-edge news and expert commentary that dissect significant international trade and supply chain issues Our coverage spans a wide array of sectors including manufacturing, retail, healthcare, food, consumer goods, and technology, ensuring that no matter your field, you have the strategic information needed to navigate the challenges and opportunities of today’s supply chain landscape. By synthesizing complex data and presenting actionable insights, The Supply Chain Report empowers business leaders, policymakers, and logistics professionals to optimize their operations and drive forward with confidence in an interconnected world.

Connect With Us

  • About
  • Events
  • Privacy Policy
  • Contact Us

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.

No Result
View All Result
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.