President Donald Trump’s tariffs, aimed at reshoring American jobs lost to overseas manufacturing, could end up lowering domestic head count instead, according to recent statements from corporate executives and economic forecasters.
With the labor market already on its heels in a no-fire, no-hire climate, concerns are rising that the duties on U.S. imports will raise operating costs and force companies to start paring their employment rolls.
For instance, respondents to the Institute for Supply Management’s November survey of factory conditions expressed elevated levels of worry.
“We are starting to institute more permanent changes due to the tariff environment,” one transportation equipment executive wrote. “This includes reduction of staff, new guidance to shareholders, and development of additional offshore manufacturing that would have otherwise been for U.S. export.”
The ISM surveys do not identify respondents by name but rather by industry.
